Last week, Li Shufu, the board chairman of Geely Group and MBH signed a joint venture agreement on production of brand taxicabs formally. According to the agreement, the taxicabs produced by the joint venture will be principally sold in Britain and other foreign markets, and given trial sale in Chinese market.

In this agreement, Geely and MBH will organize a joint venture to produce TX4 London taxicabs in Shanghai, China. And MBH will issue 30% new common stock at the price of 2.5stg per share to Geely in exchange for 48% equity of the new joint venture. When the transaction is completed, Geely (0175HK) will account for 23% of the enlarged capital stock of MBH as the largest shareholder.