China’s state-owned Dongfeng Motor Corp said on Friday it would privatise its Hong Kong-listed subsidiary, Dongfeng Motor Group, in a deal valued at HK$55.13 billion ($7.06 billion), while preparing to list its electric vehicle brand Voyah separately.
Dongfeng will pay HK$6.68 per share, representing an 11.9% premium to the unit’s last close on August 8 before trading was suspended. The parent company, which currently holds a 13.16% stake in the listed entity, has applied for the resumption of trading on the Hong Kong exchange, according to LSEG data.
The decision comes as Chinese automakers face a prolonged price war that has eroded margins and increased costs, drawing closer scrutiny from regulators in Beijing. By separately listing Voyah, of which Dongfeng owns nearly 80%, the group said it expects to enhance the EV brand’s international exposure.
The restructuring reflects a broader government drive for state-owned carmakers, traditionally reliant on foreign joint ventures, to become more independent in innovation and competitive in the rapidly expanding new-energy vehicle sector. Earlier this month, Dongfeng also put up for sale its 50% stake in Dongfeng Honda Engine Co., continuing its portfolio reshaping.
Shares in Dongfeng Motor surged more than 80% in February after the company disclosed its parent was planning a restructuring, sparking expectations of broader consolidation in China’s state-owned auto industry.