Brief: Tofas Signs Share Purchase Agreement To Buy Stellantis Otomotiv Pazarlama With Stellantis Group

Tofas Turk Otomobil Fabrikasi

31/07/2023 07:13

July 31 (Reuters) - TOFAŞ TÜRK OTOMOBİL FABRİKASI
 TOASO.IS :
    * SAID ON SATURDAY TOFAS SIGNS SHARE PURCHASE AGREEMENT TO
BUY
STELLANTIS OTOMOTIV PAZARLAMA SHARES TOGETHER WITH ALL ITS
OPERATIONS AND BRANDS IN TURKEY FOR EUR 400 MILLION WITH
STELLANTIS GROUP
    * SAYS ACQUISITION PRICE HAS BEEN DETERMINED AS EUR 400
MILLION TO
BE PAID IN CASH UPON CLOSING OF ACQUISITION, SUBJECT TO
CUSTOMARY NET CASH AND WORKING CAPITAL CLOSING ADJUSTMENTS AND
AS ADDITIONAL CONTINGENT CONSIDERATION, AN AMOUNT CORRESPONDING
TO 77.5% OF FREE CASH FLOWS GENERATED BY STELLANTIS OTOMOTIV'S
OPERATIONS IN EXCESS OF REFERENCES SPECIFIED IN THE RELEVANT
AGREEMENT IN EACH OF EIGHT FINANCIAL YEARS FOLLOWING CLOSING OF
ACQUISITION
    * SAYS ACQUISITION WILL BE CONDITIONAL UPON CERTAIN CLOSING
CONDITIONS INCLUDING THE RELEVANT ANTITRUST CLEARANCES AND OTHER
REQUISITE REGULATORY APPROVALS
    * SAYS PRIOR TO CLOSING; NEW DISTRIBUTION AGREEMENTS FOR NEW
BRANDS (PEUGEOT, CITROEN, OPEL AND DS AUTOMOBILES) INCORPORATING
COMMERCIAL PRINCIPLES SHALL BE SIGNED
    * SAYS MANUFACTURING AGREEMENT FOR GRANTING TOFAS THE
EXCLUSIVE
PRODUCTION AND DISTRIBUTION RIGHTS OF LIGHT COMMERCIAL VEHICLE
AND "COMBI" VERSIONS OF THE NEW "K0" MODEL PLANNED FOR FOUR
BRANDS IN TURKEY SHALL BE SIGNED
    * SAYS AGREEMENTS TO DEVELOP MUTUAL BUSINESS AREAS WITH THE
STELLANTIS GROUP SHALL BE SIGNED
    * SAYS THE PARTIES SHALL NO LONGER HAVE AN OBLIGATION TO
EFFECT
THE CLOSING IN EVENT THAT CLOSING CONDITIONS HAVE NOT BEEN
SATISFIED UNTIL LAPSE OF 8 MONTHS AS OF THE SIGNING OF THE SHARE
PURCHASE AGREEMENT

        
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