China Youngman Automobile is set to buy a 75% stake in Germany’s Viseon Bus, worth €10 million.
This is Youngman’s latest attempt to purchase an European automaker after its failed bid for Saab. The company has obtained provincial approval to invest 10 million euro in Viseon, the German producer of coaches, buses and airport shuttle buses. Youngman will buy 74.9% stake from the two current shareholders of Viseon, JR Bus Consult & Production (61%) and BartConsult Kereskedelmi (39%).
Yougman will offer 2 million euro to Viseon’s initial shareholders, will invest other 3 million euro in the company after the purchase and the rest of 5 million euro will be a loan to support the company. Analysts believe that this deal is way more profitable for Youngman that its previous bid for Saab last year.
“The investment in Viseon consolidates our premium position within the Chinese bus manufacturers segment,” Pang Qingnian, founder and president of Youngman, said after the two sides reached an initial agreement in May.
Youngman, which is the most important bus maker in China, manufactures Neoplan buses for the Asian market since 1994 and owns almost 80% market share of the country’s bus segment, with over 4,800 buses sold last year.