Sollers will purchase $75 million worth of shares in the JV with Ford

Sollers will purchase $75 million worth of shares in the JV with Ford


 

RNS.- Russian car manufacturer Sollers will acquire a share of 51% in the JV with Ford for $75 million according to the statement of the company on the corporate disclosure server.

“Agreeing to conclude a major transaction – an agreement to acquire 51% of Ford Sollers Netherlands BV for $75 million from Ford Russia Holdings BV” – as stated in the message after the meeting of the Board of Directors.

In addition, Sollers will lend a credit of $30 million to the JV for operating activities, according to the statement.

Ford Sollers Holding and its subsidiary FS Elabuga will be the borrowers.

On 27 March, the company has announced discontinuation of car production in Russia as of July 2019, as well as the sales of the car plants in Naberezhnye Chelny and Vsevolozhsk and the engine factory in Elabuga.

The company has decided to strengthen its position in the LCV market with the help of the Transit models manufactured in Elabuga. The control of the new JV will be transferred to the Russian company and it will commence operations on July 1.