Dongfeng Motor Group Co Ltd Announces Joint Venture With Volvo AB
Dongfeng Motor Group Co Ltd announced that on January 26, 2013, the Company entered into the Cooperation Master Agreement with Volvo (AB Volvo） for the establishment and operation of the Commercial Vehicles Co, a capital joint venture with Volvo. Pursuant to the Equity Transfer Agreement under the Cooperation Master Agreement,the Company has agreed to dispose and Volvo has agreed to purchase 45% of the Company's equity interest in the Commercial Vehicles Co for a consideration of approximately RMB5,608,000,000 (equivalent to approx HKD6,991,493,600).Immediately after the completion of the disposal, the Commercial Vehicles JVCo shall have a registered capital of approximately RMB 9,200,000,000, of which 55% and 45% shall be attributable to the Company and Volvo respectively. The respective rights and obligations of the Company and Volvo in connection with the joint venture company are regulated by the Joint Venture Contract under the Cooperation Master Agreement. The Commercial Vehicles JVCo is established under the cooperation between the Company and Volvo to develop medium and heavy duty commercial vehicles under the DONGFENG brand and to enhance the DONGFENG brand value and position. Upon completion of the Equity Transfer Agreement, the Commercial Vehicles Co shall be a 55%-owned subsidiary of the Company and its accounts shall be consolidated into the accounts of the Company.
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