On the 17th, Beijing time, according to people familiar with the matter, Volkswagen Group will acquire a 20% stake in Chinese electric vehicle battery manufacturer Guoxuan High-Tech Co., Ltd., thereby accelerating its efforts to electrify the world's largest automotive market.
This will be the first time that Volkswagen directly owns a stake in a Chinese battery maker. The company is working to achieve its goal of selling 1.5 million new energy vehicles in China by 2025.
Two sources said that Volkswagen plans to acquire shares of Guoxuan Automobile listed in Shenzhen through a discounted private equity placement in the next few weeks. Based on the current market value of Guoxuan Hi-Tech at $ 2.8 billion, 20% of the shares are worth about $ 560 million.
After the transaction is completed, Volkswagen will become the second largest shareholder of Guoxuan Hi-Tech, second only to Zhuhai Guoxuan Trade Co., Ltd., which is owned by Li Xuan, the founder of Guoxuan Hi-Tech.