Strong armed ????. I think not. I'm seeing another well executed plan to swap (contestable) contractural entitlements for complete ownership, potentially with, "zero further cost"
(1) "we had already bought everything we wanted"
Vmoto didn't buy anything. They gave Super Soco the rights to sell in China, a market they had already walked away from, and in exchange got the rights to distribute Super Soco products internationally which was the market they were focusing on.
(2) "JV now null and void as they had never paid their half of the establishment funds."
I'm glad you raised the fact that Super Soco has a debt to Vmoto Soco which would likely equal a large part of the settlement sum.
I read with great interest these words in the settlement summary. "• All current or potential future claims brought by Vmoto and its subsidiaries (Vmoto Group) against Soco Shanghai and its subsidiaries (Soco Group) will be withdrawn and no order as to costs will be made.:
Interesting choice of words. "Vmoto and its Subsidiaries" As I understand it a 50/50 JV isn't a subsidiary it's an Affiliate. the dreaded letter of the law.
Could the $6.9m be the amount necessary to eliminate the debt Super Soco owes the JV. If so VMT gets it back at settlement when they gain full control of the JV.
Dreaming maybe but good deals abound in this space.
We will know soon enough when the full year accounts are published.
VMT Price at posting:
12.5¢ Sentiment: None Disclosure: Held
