NEW YORK (AP) — Auto parts maker China Automotive Systems Inc. said Tuesday it plans to buy an additional 36.5 percent stake in Jingzhou Henglong Automotive Parts Co. Ltd., becoming the majority owner.
China Automotive already owns 44.5 percent of Henglong, which makes power steering systems and other components for China-based automakers such as Chery Auto, Brilliance Auto and FAW Volkswagen.
China Automotive valued the deal at about $33 million. It said it has signed a letter of intent to pay $10 million in cash and the rest in stock it valued at $7.20 per share, which is the volume-weighted average price over the past 20 days.
Henglong generated sales of $54.3 million during the first nine months of 2007, representing 56.6 percent of China Automotive's sales, China Automotive said.
China Automotive's shares closed Friday at $6.16 on the Nasdaq Stock Market.