Beiqi Foton Motor Co has raised 1.04 billion yuan (US$153 million) by selling shares to domestic investors after its proposed share sale to Daimler failed to win government approval.

China's biggest maker of commercial vehicles has sold a combined 105 million shares at 9.88 yuan each to five investors including the parent Beijing Automotive Industry Holdings Corp and Weichai Power Co, it told the Shanghai Stock Exchange yesterday. The move will allow Beijing Auto to be the biggest shareholder of Beiqi Foton with a 36 percent stake.

Proceeds from the share sale will be used to fund an engine venture with Cummins Inc and production expansion, and to reinforce its research and development capability.

Beiqi Foton had planned to sell around 24 percent to Daimler, one of its partners in producing light commercial vehicles.

The proposal was rejected by the government as its shares tripled during the approval process.

(Shanghai Daily July 17, 2008)