SHANGHAI, Nov 30 (Reuters) - Shanghai Automotive Co. Ltd. said on Thursday it had obtained final regulatory clearance to proceed with a 19.1 billion yuan ($2.4 billion) deal to buy key assets from its parent,Motor Corp.
The China Securities Regulatory Commission has approved a plan for Shanghai Auto to issue 3.28 billion new A-shares to, China's biggest car maker, at a price of 5.82 yuan each.
In return, Shanghai Auto will obtain assets including SAIC's stakes in lucrative ventures withand AG .
The deal, which raises SAIC's stake in Shanghai Auto to 83.83 percent from 67.66 percent, will strengthen the listed company while securing a fund-raising channel for the group's expansion.
Shanghai Auto did not specify when the transaction would be completed, but previously said it aimed for completion by the end of this year.
The deal's price of 5.82 yuan per share, decided when the transaction was first announced in July, represents a 5.5 percent discount to Shanghai Auto's last trade price on the Shanghai Stock Exchange.
The company's earnings per share in the first half of this year were 0.165 yuan but would have been 0.212 yuan if Shanghai Auto had already possessed the assets during that period, the company said. It forecast earnings of 0.385 yuan for all of 2006 and 0.475 yuan for next year. ($1 = 7.83 Yuan)