BAIC Group and Daimler AG to swap stocks

The signing ceremony for a stock swap agreement between BAIC Group and its German partner Daimler AG will be held on Feb 1, according to sources close to BAIC Group.

When BAIC Motor Co Ltd, BAIC Group's passenger vehicle arm, is floated, Daimler AG will be allowed to take a certain proportion of the stake. In return for this, BAIC Group will hold the majority share of Beijing Benz Automotive Co Ltd, the joint venture with Daimler AG, sources said.

Daimler AG will take 10 to 20 percent of BAIC Motor's share, and BAIC Motor will hold 51 percent of the Beijing Benz share, according to the agreement.

BAIC Group plans to list BAIC Motor on the Hong Kong Stock Exchange this year.