Chairman of China's Geely Has 9.7% Stake in Daimler
February 23 2018 - 1:53PM
Dow Jones News
By Robert Wall
The chairman of Chinese car maker Zhejiang Geely Holding Group
Co. has accumulated a 9.7% stake in German car and truck giant
Daimler AG -- worth about $9 billion at current market prices.
The investment wasn't made directly by the company -- which has
invested in a series of foreign car companies in recent years as it
simultaneously ramped up its domestic car business -- but instead
was made on behalf of the company's chairman Li Shufu, according to
a filing late Friday.
The stake will be held by a vehicle called Tenaclou3 Prospect
Investment Ltd., according to the filing.
Geely bought the struggling Volvo car brand in 2010 and invested
more than $3 billion in a stake in Volvo AB , the separate truck
maker, late last year. Geely representatives weren't immediately
available to comment.
Daimler said it welcomed the investment as a "vote of
confidence" in its future.
Dailmer didn't say whether Mr. Li would get a board seat, but
said it looked forward to discussing the investment with him.
Last May, Geely agreed to buy a 51% stake in British sports-car
brand Lotus and a 49.9% stake in struggling Malaysian car maker
Proton Holdings Bhd., which gave it a foothold in southeast
Asia.
(More to Come)
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
February 23, 2018 13:38 ET (18:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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