GM signs deal to sell Hummer brand
By Tom KrisherSat Oct 10 05:01:14 EST 2009
Fri Oct 9 18:01:14 UTC 2009
DETROIT, Oct 9 AP - Hummer, the off-road vehicle that was once a symbol of America's love for hulking trucks, is now in the hands of a Chinese heavy equipment maker.
General Motors Co and Sichuan Tengzhong Heavy Industrial Machinery Corp. finally signed the much-anticipated deal to sell the brand on Friday, according to a joint statement issued by both companies.
Tengzhong will get an 80 per cent stake in the company, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong through an investment company called Sichuan Huatong Investment Holding Co, will get 20 per cent.
He also is the controlling shareholder and chairman of Lumena Resources Corp, a Hong Kong listed mining company.
Financial terms were not disclosed, although a person briefed on the deal said the sale price was around $US150 million ($A165.54 million). GM said in its bankruptcy filing last (northern) summer that the iconic brand could bring in $US500 million ($A551.82 million) or more.
The person did not want to be identified because the terms are being kept private.
The investors will also get Hummer's nationwide dealer network.
GM and Tengzhong said in a statement the transaction must still be approved by US and Chinese regulators.
