The company invested $225 million and will provide $180 million in guarantees.
Israel Corp. (TASE: ILCO) fully owned US subsidiary Quantum LLC has signed a $225 million deal to set up a joint venture with an Asia carmaker. Israel Corp.’s share of the venture is 45%, and it will also provide $180 million in guarantees for the venture to obtain financing for its first stage of development.
The investment and the guarantees will be made available in accordance with the joint venture’s progress in 2007-10. The venture’s total capital will reach $500 million. Establishment of the venture is subject to approval by the regulators in the country and the obtaining of a business license.
The joint venture will manufacture vehicles using advanced technologies, and market them worldwide under a top-quality label. This is a new business sector for Israel Corp., which the company said was part of its strategy to break into developing global markets.
In December 2006, Israel Corp. deposited $200 million with an international trustee in order to facilitate the negotiations on the establishment of the joint venture.
Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2007
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