[YesAuto News] In the fourth year of the acquisition of Borgward, Beiqi Foton failed to fully revive it and plans to sell its controlling stake. On October 9, Beiqi Foton disclosed the “Announcement on the Pre-listing Transfer of 67% of Beijing Borgward Automotive Co., Ltd.” on the website of the Shanghai Stock Exchange. On October 18, Beiqi Foton plans to officially list on the Beijing Equity Exchange, transferring 67% of Baowo's equity at a listing price of 3.87 billion yuan.
According to BAIC Foton’s announcement, on August 31, 2018, the book value of Borgward’s total assets was 11.82 billion yuan, the book value of liabilities was 6.67 billion yuan, and the book value of net assets was 5.15 billion yuan. Appraised by the asset-based method, Borgward’s total assets are 12.4 billion yuan, liabilities are 6.64 billion yuan, net assets are 5.77 billion yuan, and the appraisal value is 620 million yuan, with an appreciation rate of 12.1%. As a result, the estimated net asset value corresponding to 67% of the equity is 3.87 billion yuan.
The Borgward brand was born in 1919 and was once known as the third largest automobile manufacturer in Germany. In 1961, it closed down due to the debt crisis. After 53 years of silence, Borgward was acquired by Beiqi Foton in 2014. At present, Borgward’s main models on sale are Borgward BX5, Borgward BX7, Borgward BX6 and Borgward BXi7. From 2018 to 2022, Borgward plans to release more than two new models every year.
In response to the issue of equity transfer, Borgward replied to the editor of Autohome that the absorption of new capital will inject more sufficient capital power for Borgward. In the future, Borgward will introduce a new model in its marketing strategy. At present, China Rent-A-Car is the biggest “scandal” target for Baowo, and this company is actively deploying the automobile industry. As early as July of this year, China Car Rental announced that it planned to acquire 37% of Wulong Electric Vehicles. Prior to this, it had also invested in Xiaopeng Motors, an early car company.