Qingling Motors controlling shareholder to undergo equity transfer

Qingling Motors (HKEX: 1122) announced that its controlling shareholder, Qingling Motors (Group) Co. Ltd, will undergo an equity transfer. The Chongqing Municipal People's Government intends to gratuitously transfer 80% of its equity interest in Qingling Group to Chongqing Yufu Holding Group Co., Ltd. Yufu Holding is a state-owned capital operating platform. Post-transfer, Qingling Group will remain the controlling shareholder of Qingling Motors, with Chongqing SASAC remaining the de facto controller. The company says the restructuring will not impact its core business operations. The transfer is subject to regulatory approvals, including Hong Kong's Takeovers Code. Yufu Holding intends to apply for a waiver from the mandatory general offer requirement under the Takeovers Code.