Germany's MAN to be 50:50 partner in Force Motors JV

MUMBAI Wed Dec 3, 2008 5:47pm IST

Visitors walk along  display of MAN trucks during a preview day at the IAA commercial vehicles trade fair in Hanover in this September 24, 2008 file photo. REUTERS/Christian Charisius

Visitors walk along display of MAN trucks during a preview day at the IAA commercial vehicles trade fair in Hanover in this September 24, 2008 file photo.

Credit: Reuters/Christian Charisius

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MUMBAI (Reuters) - Force Motors Ltd said on Wednesday it would sell up to 14.50 percent stake in its auto components joint venture with German truckmaker MAN for about 3 billion rupees, sending the former's shares up.

MAN would acquire additional equity in the joint venture to increase its stake to 50 percent, via a rights issue for up to 2.5 billion rupees.

Force Motors currently holds 70 percent stake in the JV, MAN Force Trucks Pvt Ltd, while the German firm holds the rest.

The joint venture would start designing and make trucks and bus chassis over the next few months to widen its footprint in the Indian market.

Shares of Force Motors were up 20 percent at 74.40 rupees, their maximum daily limit, in the Mumbai market.

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