GAC Group's annual net profit increased by 1.11 times to 4.295 billion yuan

GAC Group (02238) announced its final results for the year ended December 31, 2010, with net profit of RMB 4.295 billion (same as below), an increase of 111.39% compared to the same period of 2009, with EPS of RMB 0.9192 and final interest of RMB 0.11. The company recorded net profit of RMB 2.032 billion in the same period of 2009.

GAC Changfeng (600991) disclosed on the 23rd the GAC Group’s share swap absorption and merger plan. GAC Group absorbed GAC Changfeng by way of share swap, GAC Group A shares issued price was 9.09 yuan/share, and GAC Changfeng’s conversion price was 14.55 yuan/ Shares, the average price of GAC Changfeng A-shares trading on the 20 trading days prior to the pricing base date was a premium of approximately 15% to RMB 12.65 per share. From this, it is determined that the share exchange ratio for this share swap absorption merger is 1.6:1, that is, each GAC Changfeng stock held by the conversion shareholder can be exchanged for 1.6 shares of GAC Group A shares.

Mitsubishi Motors has promised to exercise its first cash option in this share swap absorption merger and will not participate in the conversion.

According to the announcement, the swap absorption merger will provide the first cash option to the target shareholder of the first cash option. The shareholders of GAC Changfeng who successfully declare the exercise of the first cash option may request the first cash option provider to acquire all or part of the GAC Changfeng stocks held at RMB 12.65 per share.