SHANGHAI (Reuters) - A Chinese partner company of Ford Motor F.N, Chongqing Changan Auto Co, said on Sunday that it would spend up to HK$909 million ($117 million) to buy back its own Hong Kong dollar-denominated B shares 200625.SZ.
The company said it had decided on the buyback, which needs the approval of a shareholders meeting on March 3, because its B shares were valued too far below its yuan-denominated A shares 000625.SZ in the Shenzhen stock market.
The B shares most recently traded on October 9 last year at HK$1.68, a discount of 60 percent to the A shares, before trade in both types of stock was suspended pending an announcement on an asset restructuring at the firm. It did not say when trading would resume.
The buyback would be conducted in the 12 months after shareholder approval at a maximum price of HK$3.68 per share, purchasing up to 423 million B shares, the company said.
Up to 70 percent of the company’s B shares, equivalent to 18.1 percent of its total share capital, would be bought back.
($1 = 6.83 yuan)
Reporting by Andrew Torchia; Editing by Jason Neely
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