Selling Nissan cars is a profitable business for the Tan Chong Group, and the company has made a move that will see it expand greatly in fast growing Indochina, which has a combined population of 107 million and GDP of US$109 billion (2009 figures).
ETCM (V) Pte Ltd, a wholly owned subsidiary of Tan Chong Motor Holdings Bhd, has entered into a capital assignment agreement to acquire 74% charter capital contribution in Nissan Vietnam Co Ltd. For that, ETCM will pay Denmark-based Kjaer Group A/S US$7.4 million cash.
With that, the terms of a joint venture agreement entered by Nissan and Kjaer in October 2008 will be amended, and ETCM will replace Kjaer as the largest share capital holder in Nissan Vietnam. The remaining 26% is held by Nissan. ETCM will manage Nissan Vietnam with the Japanese carmaker in a JV agreement.
“The proposed joint venture is a testimony of business co-operation between Tan Chong Motor Group and Nissan Motor to further expand the Nissan franchise in a key Asean emerging market,” the company said in a statement.