ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

Hong Kong watchmaker snaps up 'Japan's Tesla' for $114mn

O Luxe to buy Japanese electric car startup GLM

The GLM G4 electric supercar, launched at the Paris Motor Show in October 2016, is viewed as Japan's response to U.S. luxury electric vehicle maker Tesla. (Photo courtesy GLM)

HONG KONG -- Watchmaker O Luxe Holdings said on Sunday it will buy Japanese electric vehicle startup GLM for about 896 million Hong Kong dollars ($114 million).

O Luxe will acquire 85.5% of GLM's outstanding shares.

GLM was set up as a Kyoto University venture in 2010. The company develops, manufactures and sells electric vehicles and is often referred to as "Japan's Tesla," after its American rival. It drew attention this year with its prototype Tommykaira ZZ, which boasts the world's first resin windshield.

The Hong Kong watchmaker plans to fund the purchase both with cash and by issuing new shares to GLM. The shares will be worth HK$0.82 apiece, 19.6% cheaper than the HK$1.02 at Thursday's close. O Luxe plans to continue buying the remaining GLM shares from minority shareholders in the hopes of taking full control of the Japanese company.

O Luxe also has some upstream businesses such as gold mining.

In April it revealed its intention to buy a Japanese electric vehicle company.

Following Sunday's announcement, O Luxe's share price shot up in Hong Kong on Monday, hitting a high of HK$1.23, up HK$0.21, or 20.58%, from Thursday when the stock last changed hands. The stock last touched the level nearly three years and eight months ago on Nov. 20, 2013.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media