Force Motors sells JV stake to MAN for Euro 150 million

Force Motors has exited its joint venture with MAN Trucks & Bus AG of Germany with the completion of transfer of 55.8 million equity shares of the erstwhile MAN Force Trucks Pvt Ltd to MAN for Euro 150 million (Rs1,041 crore).

The transfer is in accordance with the share transfer agreement following the split of the joint venture, announced in November 2011, Force Motors said in a filing with the Bombay Stock Exchange (BSE) today.

Force Motors and MAN, of Munich, Germany, had on 21 November 2011, executed an agreement for sale of its stake in the JV, MAN Force Trucks Private Limited, to MAN. The transfer of shares has been completed after the receipt of all permissions and on completion of all conditions precedent to the sale, Force Motors said.

Force Motors had, in 2003, tied up with Munich-based MAN with plans for a project to develop new generation heavy commercial vehicles.

The agreement was for the sourcing of technology from the German company. In 2006, the project was turned into a joint-venture between the two companies, with 30 per cent equity with MAN. MAN's shareholding went up to 50 per cent in 2008. However, the joint venture did not live up to expectations and eventually led to Force's exit from the JV.

Force Motors is an Indian manufacturer of three-wheelers, multi-utility and cross country vehicles, light commercial vehicles, tractors, buses and now heavy commercial vehicles. It was originally named Firodia Tempo Ltd and later after partial acquisition by Bajaj Auto as Bajaj Tempo Ltd.