To reorganise shareholding in MAN Force Trucks
The Pune-based Force Motors and MAN Truck & Bus AG, Munich, Germany, the joint venture partners of MAN Force Trucks Pvt. Ltd. (MFT) have reached an agreement in principle to reorganise their shareholding in the equity share capital of MFT and to rearrange their relationship in respect of MFT.
Accordingly and subject to receipt of necessary approvals, Force Motors will sell and transfer 55.79 crore equity shares of MFT to MAN for a consideration of 150 million euro.
Force and MAN will continue to co-operate with each other and with MFT based on a new contractual arrangement.
In 2003, Force Motors had conceived a project for industrialising new generation heavy commercial vehicles in India. For this purpose, it sourced technology from leading German companies like MAN for engines, cabs and axles and ZF for gearboxes.
Based on this licensed technology, Force Motors created a full range of heavy commercial vehicles.
In 2006, on MAN's request and with a view to achieving substantial export, the project was converted into a joint venture with 30 per cent equity with MAN and a new company, a joint venture, MAN Force Trucks was formed. In 2008, MAN's shareholding was hiked to 50 per cent.