By staff reporter Chen Qian

SAIC group will become the largest shareholder of Shanghai Bashi Industrial (Group) Co. (SSE: 600741), in a restructuring plan approved by the Shanghai government, Shanghai Bashi announced on Tuesday.

According to the plan, 27.88 percent of Shanghai Bashi shares held by Shanghai Jiushi Co. will be transferred to China’s largest auto conglomerate, Shanghai Automotive Industry Corporation (SAIC), for free. And Shanghai Bashi will sell its entire assets and debt, valued at 2.45 billion yuan altogether, to Shanghai Jiushi Corp, except the shares of China Minsheng Bank.

Thirdly, Shanghai Bashi will buy all assets and debt of SAIC’s independent components business through offering 1.15 billion shares to SAIC at 7.67 yuan per share.

After the restructuring, SAIC group will hold 60 percent of Shanghai Bashi’s stake. And all of SAIC’s auto components business will be listed through Shanghai Bashi.

Since the SAIC’s car making assets were listed through SAIC Motor Corp (SEE: 600104) in 2006, the company has sought to list its auto parts manufacturing assets by injecting the assets into Shanghai Bashi.

1 yuan = 14 U.S. cents