Dongfeng Motor shares jump nearly 70% on privatization plan

Shares of Dongfeng Motor Group (HK:0489) soared nearly 70% on Monday, reaching HK$10.10 — their highest level since October 2017, Investing.com reported. The surge followed news that state-owned parent Dongfeng Motor Corp plans to take the company private.

The proposed deal includes HK$6.68 per share in cash plus a stake in the EV unit Voyah, valuing the offer at HK$10.85 per share, representing a 12% premium to the last closing price.

The privatization is valued at HK$55.13 billion ($7.06 billion). Dongfeng also plans to separately list Voyah in Hong Kong to strengthen its presence in the electric vehicle market.