China's leading automaker SAIC Motor Corp had bought a stake in General Motors, before the U.S. auto giant's IPO in Hong Kong, SAIC said in a statement Thursday.
SAIC Motor HK Investment Ltd, wholly owned by SAIC, had acquired 15.2 million ordinary shares for 500 million dollars, accounting for 0.97 percent of GM's total equity.
The unit paid 33 dollars per share and would raise all the capital from the Hong Kong financial market, SAIC said in the statement.
SAIC said the investment in GM was based on "the two companies' long term, steady strategic cooperation and confidence in GM's development prospects".
GM is a key partner of SAIC. Their joint venture in China, Shanghai GM, which was put into operation in 1999, is China's leading automaker and continued to top Chinese automakers in sales in the first ten months of this year with 840,000 automobiles sold.
The deepened partnership with GM would help the Chinese automaker grow its business, explore overseas markets and enhance research and development capability.
GM welcomed decision to take part in the massive public offering.
Tim Lee, president of GM International Operations, said the company welcomed SAIC's participation of the public offering in a statement.
GM hopes to rid of government ownership through the listing planned for Friday, after a state-backed bankruptcy reorganization in June 2009.
GM has set a price of 33 dollars per share for a stock listing that is set to garner at least 20.1 billion dollars.
