BOULOGNE-BILLANCOURT (dpa-AFX) - Geely Automobile Holdings Limited announced the company, Geely Holding, GA (SGP) - a wholly-owned subsidiary of Geely Automobile, GH (SGP) - a wholly-owned subsidiary of Geely Holding, Renault, and the JV company entered into the Contribution Agreement and the Joint Venture Agreement. GA(SGP) conditionally agreed to contribute the entire issued share capital of its wholly owned subsidiary, along with cash, to the JV company in exchange for ordinary shares, warrants and convertible preferred share of the JV Company. GH(SGP) conditionally agreed to contribute the entire issued share capital of its wholly-owned subsidiary to the JV Company in exchange for ordinary shares of the JV Company. The consideration value of the equity interest in the JV Company is 1.74 billion euros. The aggregate consideration value of GA(SGP)'s contributions is 504 million euros. The consideration value of GH(SGP)'s contribution is 121 million euros. Upon Closing, the JV Company will be owned as to 73.57% by Renault, as to 21.29% by GA, as to 5.11% by GH and as to 0.03% by an independent third party.
Renault do Brasil or the JV Company is a limited liability company incorporated under the laws of Brazil. The JV Company is principally engaged in the development, supply, production, and distribution of passenger vehicles and light commercial vehicles under the Renault Brand in Brazil. Currently, the JV Company is owned as to 99.96% by Renault and 0.04% by an independent third party.
The principal business of the JV Group will be to produce and distribute passenger vehicles under the Renault Brand and the Geely Brands, as well as light commercial vehicles under the Renault Brand in Brazil. The JV Group will also focus on developing the Renault Brand and the Geely Brands in Brazil. The JV Board shall consist of six JV Directors. The Geely Parties shall be entitled to propose two JV Directors, and Renault shall be entitled to propose four JV Directors.
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