Dongfeng Motor Group (00489.HK) and the offeror, Dongfeng Motor Group (Wuhan) Investment, jointly announced that all prerequisites for privatizing Dongfeng Group via an absorption merger and the spin-off and listing of Lotus Technology Co., Ltd. have been fulfilled. The transaction is now entering its final execution phase.

Under the merger agreement, the offeror will pay a cash consideration to all H-share shareholders at a cancellation price of HK$6.68 per H-share. Once all merger conditions become effective, Dongfeng Group will apply to the Hong Kong Stock Exchange for a voluntary withdrawal of its H-share listing status. Concurrently, Dongfeng Group will distribute its shares in Lotus Technology to existing shareholders and apply for Lotus Technology’s H-shares to be listed by introduction on the Hong Kong Stock Exchange. This spin-off does not involve any fundraising.

The announcement disclosed that Lotus Technology has completed the filing process for its introduction listing with the China Securities Regulatory Commission’s International Cooperation Department and has received the Hong Kong Stock Exchange’s in-principle approval for the listing. Together with earlier approvals from authorities such as the National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Foreign Exchange, all three merger prerequisites have now been fully satisfied.

A comprehensive document containing details of the privatization plan, the notice of the shareholders’ meeting, and an independent financial advisor’s opinion will be dispatched within seven days.