SAIC's MG Motor India to bring in new investors: Report
IndoEdge India Fund will buy an 8% stake, a dealer trust will take a 3% stake and an employee stock ownership plan will own 5%.
China's SAIC Motor Corp Ltd said its MG brand would be bringing in local investors in India to create a more favourable operating environment in the world's third-largest auto market, Reuters reported.
JSW Ventures, part of the JSW conglomerate, plans to buy a 35% stake in MG Motor India for Rs 3,580 crore ($430 million).
IndoEdge India Fund will buy an 8% stake, a dealer trust will take a 3% stake and an employee stock ownership plan will own 5%.
New Delhi has sought to limit investments from Chinese companies amid geopolitical and trade tensions, the newswire reported.
"As MG Motor India aims to continue to increase MG brand's market share in India and effectively prevent operating risks, the unit plans to introduce local Indian investors to create more favorable conditions for sustainable and healthy development," SAIC said in statement late on Sunday.
SAIC has been counting on global markets for growth especially with its MG brand - which is a continuation of the iconic British marque - particularly since it and its foreign partners have lost much ground in its home market to BYD and Tesla, the newswire noted.
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08 Apr 2024
Ketan Thakkar

Autocar Professional Bureau