Geely in talks with MBH on a 51% stake
- Source: Global Times
- [15:41 March 22 2010]
- Comments
By Shi Jierui
Geely is in talks with Manganese Bronze Holdings (MBH) in a bid to raise its stake to 51 percent at 70 pence ($1.05) per share, says Geely's PR Director Yang Xueliang during a telephone interview with the Global Times Monday.
But he didn't give more details about Geely's inclinations.
The Chinese automaker already owns a 23 percent stake in MBH.
Last week, the black London taxi manufacturer announced losses had risen to £7 million ($10.46 million) in 2009, and the company expects the Chinese share holder will take control of the company.
Chief Executive of MBH John Russell told the media that the consideration of an equity placing to Geely would cement the relationship between the two, and enhance MBH's capital base.
MBH planned to source bodies and chassis for TX4 from Shanghai rather than Coventry, while the company will assemble and sell Geely's Emgrand models to the Western market.
Lin Muhong, an auto analyst at Industrial Securities, said Geely might not have enough time and money considering the issue, because the company was busy with negotiations on the Volvo deal.
