SAIC and Momenta agreed a driving-software joint venture in which Momenta holds 51 percent
Filings in Hong Kong and Shanghai put the venture's registered capital at RMB300 million, and Momenta's said it will offer L2 and L3 intelligent driving products across SAIC's vehicle platforms worldwide.
Momenta Global said in a voluntary announcement to the Hong Kong stock exchange on November 5 that its wholly owned subsidiary Momenta (Suzhou) had agreed with SAIC Motor and Yandian Technology to establish a joint venture, whose name is still to be determined, with registered capital of RMB300 million. Momenta Suzhou will subscribe RMB153 million for 51 percent, SAIC Motor RMB75 million for 25 percent and Yandian Technology RMB72 million for 24 percent. The announcement describes Yandian Technology as a controlling subsidiary of SAIC Motor.
The filing says the venture is meant to deepen cooperation between the two groups globally and across all vehicle platforms, offering intelligent driving products and services including L2 and L3. SAIC Motor’s board resolution announcement, filed in Shanghai, says the board approved the venture on November 5 by seven votes to none, to strengthen the company’s high-level intelligent driving development capability and help its vehicles compete in global markets. Its capital split matches Momenta’s.
Neither filing gives the venture’s location, start date or any terms on intellectual property or licensing. Momenta said each applicable percentage ratio under the Hong Kong listing rules was below 5 percent, so the deal is not a notifiable transaction, and that it is not a connected transaction.