Dongfeng Investment to acquire 55% stake in Dongfeng Automobile for 1.1 bn yuan

Beijing Zhong Lun Law Firm has issued a legal opinion regarding Dongfeng Motor Group (Wuhan) Investment Co., Ltd.'s (Dongfeng Investment) acquisition of 55% of Dongfeng Automobile Co., Ltd. (Dongfeng Automobile). The acquisition, valued at 1,100,000,000 yuan, is a result of Dongfeng Investment absorbing Dongfeng Motor Group Company Limited (Dongfeng Group), which was the previous controlling shareholder of Dongfeng Automobile. Post-acquisition, Dongfeng Investment will directly hold 55% of Dongfeng Automobile's total share capital.

This transaction is exempt from a tender offer requirement under Chinese acquisition regulations, as it involves a transfer between entities under the same ultimate control, the State-owned Assets Supervision and Administration Commission of the State Council. The acquisition is not expected to alter the actual controller of Dongfeng Automobile. The company expects to maintain its independent operations, with no plans for major changes to its main business, asset structure, or senior management within the next 12 months.

Financially, Dongfeng Automobile reported a net profit of 97,206,148.62 yuan for the first half of 2025, a 48.66% increase year-over-year, alongside total assets of 16,972,376,701.30 yuan. The acquisition is awaiting approvals from Dongfeng Group's shareholders, Hong Kong Stock Exchange, and various Chinese regulatory bodies.