Weichai Power plans spin-off of Weichai Lovol in Hong Kong

Weichai Power Co., Ltd. has announced plans to spin off its subsidiary, Weichai Lovol Intelligent Agricultural Technology Co., Ltd., through a separate listing on the Main Board of the Hong Kong Stock Exchange. The proposed spin-off will involve an offering of new overseas listed foreign shares (H Shares) by Weichai Lovol, representing not more than 25% of the enlarged share capital of Weichai Lovol after the offering, with a potential over-allotment option to issue up to 15% more shares. While the company believes the listing will improve competitiveness and access to capital, the spin-off is subject to regulatory approvals, including from the China Securities Regulatory Commission and the Hong Kong Stock Exchange, as well as shareholder approval. Weichai Power will provide assured entitlement to the new shares to the holders of H Shares of the Company.