Article: GEELY DENIES ACQUISITION OF VOLVO VIA BONDS OFFERING


AsiaInfo Services
09-17-2009
Geely Denies Acquisition of Volvo via Bonds Offering

HONG KONG, Sep 17, 2009 (SinoCast Daily Business Beat via COMTEX) -- Chinese private carmaker Geely Automobile Holdings Ltd. (SEHK: 0175) yesterday announced the trading suspension for the upcoming offering of convertible bonds and options, but denied that this move was related to its purchase of Volvo.

About USD 250 million gained from the issue will likely be used for the company's production capacity expansion, said insiders. Presently, two large-scale vehicle production bases of Geely are under construction in Jinan Province, east China, and the southwestern city of Chengdu, Sichuan Province.

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