Investing.com– Chinese automaker Dongfeng Motor Group (HK:0489) is set to divest its 50% stake in a joint venture with Japan’s Honda Motor (TYO:7267), according to a disclosure on the Guangdong United Property Rights Exchange on Monday.
The listing reveals that the state-owned automaker will sell its entire 50% equity in Dongfeng Honda Engine Co, though no financial terms or timing were provided.
Dongfeng Group said the stake sale is intended to streamline its fuel vehicle assets and speed up the shift of capital and resources into the new energy sector.
The joint venture was established in Wuhan in 2003 and has been a major production hub for Honda-branded vehicles in the Chinese market.
Honda shares traded 1.2% higher, in line with broader markets, while trading in Dongfeng shares was halted.
