HomeStockRenault to promote Korea unit stake to China's Geely in turnaround push...

Renault to promote Korea unit stake to China’s Geely in turnaround push By Reuters



© Reuters. FILE PHOTO: A girl carrying excessive heel will get out of Geely Vehicle Holdings’ Borui sedan in the course of the Auto China 201 present in Beijing, China April 26, 2016. REUTERS/Kim Kyung-Hoon

(Reuters) -Renault mentioned it could promote simply over a 3rd of its Korea unit to China’s Geely Vehicle Holdings (OTC:), releasing up capital for the French automaker to spend money on its lagging residence market and electrical enterprise.

Renault (EPA:) is in the course of multi-year turnaround plan that’s aimed toward boosting revenue margins and splitting its electrical automobile (EV) and combustion engine companies because it seeks to meet up with rivals akin to Tesla (NASDAQ:) and Volkswagen (ETR:) within the race to cleaner driving.

The transfer to promote a 34% stake in Renault Korea Motors for 264 billion gained ($207 million) comes weeks after media experiences that Renault, the highest shareholder in Nissan (OTC:) Motor, might contemplate reducing its stake within the Japanese firm.

Renault Korea Motors will challenge 45.4 million shares at 5,818 gained per share to Geely’s unit, Centurion Industries Ltd, the 2 corporations mentioned in a press release on Tuesday.

Renault owned 80% of the unit on the finish of final yr. The remainder was owned by bank card firm Samsung (KS:) Card, which mentioned in December that it supposed to promote its stake within the unit however that no particulars had been determined.

Geely and Renault introduced a partnership in January to develop a lineup of hybrid autos for the South Korean market and overseas, produced at Renault’s manufacturing unit in Busan.

The South Korean market, dominated by native champions Hyundai Motor and Kia Corp, has been famously tough to interrupt into for automakers together with Basic Motors (NYSE:) and SsangYong Motor, now owned by India’s Mahindra and Mahindra.

($1 = 1,274.3600 gained)

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