Chinese sources say that the carmaker will go public in three years and Israel Corp. will probably spin off its stake in the company to a separate company.
Qoros Auto Company Ltd., the joint venture of Israel Corporation (TASE: ILCO) and China's Chery Automobile Co. Ltd., will hold an IPO in three years, according to Chinese sources. If Qoros goes public, Israel Corp. will probably spin off its stake in the company to a separate company.
Germany's "Frankfurter Allgemeine Zeitung" reports that Qoros will begin exporting cars to Western Europe in 2015. It quotes Qoros VP Volker Steinwascher as saying that the carmaker's starting capital was €1.8 billion, including investment from its owners, and bank credit. He said that €300 million had been invested in the first production line, and that a corresponding production line in Europe would have cost three times as much. The Qoros 3 sedan with a 1.6 liter engine will cost €20,000 in Europe.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2013
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