HONG KONG (Bloomberg) -- Nexteer Automotive Corp., the one-time GM and Delphi steering operation controlled by China’s biggest aerospace company, may seek as much as $500 million in an initial public offering in Hong Kong, two people with knowledge of the matter told Bloomberg.
Nexteer, based in Saginaw, Mich., has applied to the Hong Kong stock exchange to sell shares and may start the IPO in the second quarter, said the people, who asked not to be identified because the information is private.
Nexteer was originally part of Delphi Corp.'s spinoff from GM in 1999, but eventually went back to GM after Delphi went into Chapter 11 bankruptcy. Then in 2010, GM sold it to Pacific Century Motors, a company backed by the Beijing municipal government. Aviation Industry Corp. of China., the country’s biggest aerospace company, now owns 51 percent of Nexteer through unit AVIC Automobile Industry Holding Co., according to the Chinese company’s website.
The 51 percent stake in Nexteer was transferred to AVIC from Pacific Century in March 2011, and Beijing’s municipal government still owns a minority stake, according to the AVIC website. A spokesman for Nexteer couldn’t be reached for comment.
BOC International Holdings Ltd. and JPMorgan Chase & Co. are arranging the share sale, the people said.