Chery raises funds through share placement

Chery Automobile Co. has confirmed that it has raised money through a share placement with Chinese investors to fund its expansion projects. According to Chery spokesperson Jin Yibo, funds amounting to RMB2.9 billion (US$424.38 million) will be used to develop new alternative fuel vehicles, a heavy-duty truck manufacturing project and a new Chinese production facility. Chery said that investors included Chinese private-equity firms Bohai Industrial Investment Fund Management Co. and CDH Investments. The company added that the funds would help diversify its shareholding structure, which is currently predominantly controlled by the local government. (June 4, 2009)