BIZCHINA / Overseas Investment
DaimlerChrysler in deal with China's Foton
(AFP)
Updated: 2007-01-17 10:41
A worker polishes the sign at the Chrysler display at the 2004 North
American International Auto Show in Detroit, Michigan. [AFP]
China's Beiqi Foton Motor said it had sealed a 105-million-dollar share
sale to DaimlerChrysler as part of a new alliance with the auto giant.
Shareholders have approved the transaction, to involve selling 297
million shares priced at 2.75 yuan each for a total of worth 817 million
yuan (105 million dollars), Foton said in a statement.
On completion of the transaction, the American-German automaker
DaimlerChrysler is expected to become the second largest shareholder of
Beiqi Foton, with a 24-percent stake.
The private placement agreement was announced in November.
Foton also signed a preliminary arrangement with DaimlerChrysler covering
medium and heavy-duty truck projects.
The cooperation will "sharpen the competitive edge of its current product
line-up... and increase its profitability," Foton said.
The two partners are also considering a distribution role for Beiqi Foton
for Mercedes Benz trucks in China and for Foton to export light-duty
trucks via DaimlerChrysler's overseas sales network, it said.
The deals are still subject to official approval.
(For more biz stories, please visit Industry Updates)
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