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Tan Chong buys 74pc stake in Nissan Vietnam
Tan Chong Motor Holdings Bhd's wholly owned subsidiary, ETCM (V) Pte Ltd, has entered into a capital assignment agreement to acquire Denmark-based Kjaer Group A/S's 74 per cent charter capital contribution in Nissan Vietnam Co., Ltd for US$7.4 million cash.
ETCM has also entered into an agreement with Nissan Motor Co., Ltd and Kjaer to amend the terms of a joint venture agreement, entered by Nissan Motor and Kjaer on Oct 6, 2008, that will see ETCM replacing Kjaer as the largest share capital holder in Nissan Vietnam, followed by Nissan with 26 per cent.
It has also entered into a joint venture agreement with Nissan Motor in respect of the establishment and operation of Nissan Vietnam which will see ETCM to carry on the business of Nissan Vietnam with the Japanese automobile manufacturer.
In a statement today, Tan Chong Motor said the proposals would complete its Indochina strategy in terms of geographic coverage.
"The proposed joint venture is a testimony of business co-operation between Tan Chong Motor Group and Nissan Motor to further expand the Nissan franchise in a key Asean emerging market," it said.
In 2009, Indochina market has a combined population of 107 million and GDP of US$109 billion.
Tan Chong Motor said the proposals would contribute positively to the group's earnings in the long term.
Business Times
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