Reuters reveals Chinese state investors to take BMW partner Brilliance private; market reacts
24 September 2020, 2:08 pm. 1 minute
Reuters exclusively reported that Chinese state-backed investors are considering taking Brilliance China Automotive Holdings Ltd private, in the latest such deal targeting beaten down Hong Kong-listed stocks. Prospective investors believe Brilliance is undervalued in Hong Kong, Reuters sources said, as the automaker is trading at 3.67 times expected earnings, way below the industry’s median multiple of 14.4, according to Refinitiv data.
Market Impact
Shares in BMW’s main Chinese joint-venture partner Brilliance China Automotive Holdings Ltd erased the day’s losses and rose as much as 12.3% on Sept. 24, their highest level since Aug. 17, after the Reuters report was published.
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