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Geely Automobile, Zhejiang Geely Holding and Renault entered into a conditional agreement to set up a joint venture to engage in the powertrain business, Geely said in a statement.
The parties will contribute all of their respective shares, directly or indirectly held, in Aurobay Holding, Aurobay SG, and Horse Holding to the JV Company in exchange for the JV Shares, it said.
Upon Closing, the JV Company will be owned as to 33% by Aurobay Holding (BVI), an indirectly wholly-owned subsidiary of Geely Auto, 17% by GHPT Limited, an indirectly wholly-owned subsidiary of Geely Holding, and 50% by Renault, it said.
On completion, Aurobay Technology will no longer be a subsidiary of Geely Auto and the reduction of the interest constitutes a Deemed Disposal which is estimated to lead to an unaudited gain of about 9.782 billion yuan, it said.