Force Motors and MAN have completed the 150 million Euro deal which will allow MAN to take over the joint venture where both parties held equal stake. Force Motors has informed the Bombay Stock Exchange about the completeion of the deal under which it transferred 5.5 crore shares to MAN for a transaction value of 150 million Euros. The agreement between the two was signed on November 21, 2011.
The Force-MAN JV was set up in 2003, with Force Motors holding a 70 percent stake. In 2008, the partners revised the stake holding to 50:50. With the new move, Force Motors stake is expected to retain a very small stake in MFTPL.
The revenue gained from the stake sale will add to Force Motors’ ability to invest in its newly formed passenger vehicle business.
Force One -- the company’s first SUV went on sale in October. It will launch a new MPV in 2012.
MAN trucks sell around 400 units a month. The German CV maker also plans to enter the Indian bus market.