Indias Argentum Motors finalizes Heuliez buy-out

By Lawrence J. Speer
PARIS--India's Argentum Motors has finalized negotiations to acquire a controlling stake in French coachbuilder Heuliez, which has been under bankruptcy protection since December 2007.
 
Argentum, India's largest independent automobile contract manufacturer will pay 10 million euros for a 60 percent stake in Heuliez, the French company said in a statement today.
 
Argentum will invest an additional 10 million euros in the next five years, which will increase its Heuliez stake to 67 percent, according to the statement.
 
Heuliez plans to raise an additional 5 million euros through an as-yet undefined capital increase, the company said.
 
Terms and conditions of the new agreement between Heuliez and Argentum will be presented July 23 to the French district court in Bressuire, which oversees Heuliez's bankruptcy protection proceedings, the company said.
 
Heuliez is a family-controlled firm specialized in retractable hardtop roofs and contract manufacturing for leading carmakers.
 
The o downturn in specialty vehicle manufacturing pushed the company into bankruptcy protection in 2007.
 
Heuliez currently builds the Opel Tigra TwinTop, but the contract ends in 2009.
 
Company executives have told the district court that finding a replacement vehicle is crucial to its survival.
 
Heuliez built 20,780 TwinTops in 2007, down from 27,248 in 2006, according to J.D. Power Automotive Forecasting.
 
Production in the first quarter fell 62 percent to 2,484 units compared with the same period last year.
From: Automotive News Europe

Address: Bibo Road, Zhangjiang High-technology Park, Shanghai, China
Tel: 0086-21-3637-6177
Fax: 0086-21-3637-6177
Skype: eastfilters