Major Denway shareholder supports privatisation bid -report

HONG KONG, May 25 (BestGrowthStock) – Templeton, the largest minority
shareholder in Denway Motors (0203.HK: ), supports a controversial
plan by Denway’s parent to take the company private, Hong Kong
media reported on Tuesday.

Denway shares have tumbled 27 percent since Guangzhou Auto
first announced its plan to take Denway private last week.
Investors expressed concerns over the valuation of the deal,
which would see Denway shares swapped out for Guangzhou Auto
shares ahead of a listing in Hong Kong by Guangzhou Auto.

Templeton Asset Management, Denway’s second-biggest
shareholder with a 15.47 percent stake, plans to support the
privatisation offer, the South China Morning Post reported,
citing Templeton executive chairman Mark Mobius.

“We have enough to block this, but we think the deal makes
sense,” Mobius told the newspaper.

“We would have liked to have seen a dividend paid out before
the deal … but we think the valuation ratios are fair and will
go along with it.”

Guangzhou Auto has already said that Australian fund manager
Platinum Investment Management, which holds 5.22 percent of
Denway, had signed a binding agreement to support the
privatisation.

Guangzhou Auto is China’s sixth-largest automaker, and is the
China partner of Honda (7267.T: ), Toyota (7203.T: ) and Fiat
(FIA.MI: ). It holds 37.9 percent of Denway, which is the 50-50
joint venture partner with Honda in Guangqi Honda.

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(Reporting by Doug Young; Editing by Ken Wills)

Major Denway shareholder supports privatisation bid -report