Geely may soon control London black cab maker
August 02, 2010 - Geely Automobile Holdings plans to raise its stake in Manganese Bronze Holdings (MBH), maker of the iconic London black cab, to over 51 percent, and the acquisition agreement is likely to be signed in August, according to today's Shanghai Securities News.
Geely said it will further accelerate the process of promoting MBH-owned products in domestic and international markets, and MBH also established a goal of returning to profitability in 2011.
MBH CEO John Russell said the company has been negotiating with Geely for a long time in order to persuade the company to increase its stake in MBH. Currently, the negotiation is still in progress, but it is estimated that the two sides will reach an agreement a few weeks from now
Geely said in a statement on May 17 that it was invited to subscribe to 20 million new ordinary shares of MBH. After the subscription, Geely's stake in MBH will increase from nearly 20 percent to more than 51 percent.
MBH said the acquisition will help greatly increase MBH's capital stock, and the two sides will co-develop more new models. To attract and reassure investors, Russell said MBH will return to profitability in 2011 despite the fact that it is unlikely to be profitable in the second half of 2010.
In addition, MBH will be one of the automakers that will most benefit from the 2012 London Olympic Games.
