Germany’s Man AG to raise stake in Indian joint ventureDecember 3rd, 2008 - 9:25 pm ICT by IANS
Mumbai, Dec 3 (IANS) German truck and bus maker Man AG Wednesday said it will raise its stake in its joint venture with Force Motors to 50 percent through a stock buyout and rights issue.Man currently holds 30 percent stake in the joint venture company, Man Force Trucks Ltd, while the remaining shares are with Force Motors.
According to the deal that was struck in Munich Tuesday, Man will buy Force Motors’ 14.2 percent stake in the joint venture for 49 million euros ($62 million).
The truck major will buy additional equity worth 40 million euros ($50.5 million) by way of a rights issue to raise its stake to 50 percent.
The joint venture was announced in 2005 to manufacture high capacity vehicle. Its plant is located at Pithampur in Madhya Pradesh.