GKN plc announces dissolution of joint arrangements in Thailand.
GKN plc announces the dissolution of its Driveline joint arrangements with
JTEKT Corporation (`JTEKT`) in Rayong, Thailand. GKN and JTEKT have concluded a Share Exchange Agreement under which GKN has acquired JTEKT`s 49% shareholding in GKN Driveline JTEKT Manufacturing Limited (`GTM`), and transferred to JTEKT its 49% shareholding in GKN JTEKT (Thailand) Limited (`GTT`).
Following this amicable dissolution, GKN now owns 100% of GTM (the
manufacturing facility) and JTEKT now owns 100% of GTT (the sales and
distribution arm). Each will operate independently except for the continuation
of certain existing supplies of driveshafts to Toyota.
GKN will pay JTEKT net consideration of approximately £7.7 million which will
be funded from the Group's existing resources, with further deferred
consideration of £1.3 million contingent upon GTM obtaining certain specified
future business awards.
27 January 2012
Investor Relations Director
T: +44 (0)207 463 2382
M: +44 (0)7739 778 187
Group Communications Director
T: +44 (0)1527 533238
M: +44 (0)7920 540051
T: +44 (0)20 7269 7113
M: +44 (0)7775 641 807
Notes to Editors
GKN plc is a global engineering business serving the automotive, aerospace and
land systems markets. It has operations in more than 30 countries, around
42,000 employees in subsidiaries and joint ventures and had sales of £5.4
billion in the year ended 31 December 2010. GKN plc is listed on the London
Stock Exchange (LSE: GKN).