Geely reneges on cab fare share
1 min read
Manganese Bronze, the leading manufacturer of the distinctive London black taxi, announced today (12 August) that its Chinese manufacturing partner, Geely Automobile Holdings, was pulling out of a deal whereby it was to take part in a share placing that was set to raise new funds.
An announcement said Geely had decided not to proceed with the proposed placing of 20 million shares at 70p each but that Geely had nevertheless confirmed its commitment to the Shanghai LTI Automobile Components Company (SLTI) joint venture with Manganese Bronze and that future operational plans remained unaffected. This means that SLTI will continue to supply Manganese Bronze with components for its UK manufacturing operation as well as producing lower cost London taxis (pictured) for international sale.
Manganese Bronze said that notwithstanding Geely's withdrawal from the proposed placing, it had no reason to believe that its working capital will be insufficient for at least 12 months from the date of its recent switch from trading on the main London Stock Exchange to trading on the Alternative Investment market (AIM).
The company said it remained well positioned to continue with its international expansion plans for the iconic London black taxi.
Manganese Bronze chief executive John Russell said: "We look forward to our continuing cooperation with Geely. The decision not to proceed with the placing should not affect the future of our joint venture or international expansion plans."
Had the placing gone ahead, it would have given the Geely a 51% stake in Manganese Bronze – it currently has just short of 20%.
