BEIJING, China (AFP) — China’s leading automaker SAIC Motor Corp confirmed yesterday it had agreed to buy a stake in General Motors (GM), as the US auto giant prepared for one of the largest stock offerings in history.

SAIC said its wholly owned unit SAIC Motor HK Investment had acquired 15.2 million ordinary shares for US$500 million, accounting for just under one per cent of GM’s total equity.

The unit paid US$33 per share and would raise all the capital from the Hong Kong financial market, SAIC said in the statement.

GM welcomed SAIC’s decision to take part in the massive public offering.

“We are happy with SAIC’s decision to participate in GM’s public offering,” Tim Lee, president of GM International Operations, said in a statement.

“Our 10 joint ventures with SAIC include some of China’s most successful automotive operations. SAIC’s participation in GM’s public offering represents another milestone in our partnership.”

GM hopes the listing — planned for yesterday — will allow it to break from government ownership, after it was forced into a state-backed bankruptcy reorganisation in June 2009.

GM has set a price of US$33 per share for a stock listing that is set to garner at least US$20.1 billion.