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FINANCIAL NEWS
MICRODOM invests $275m in KSU car manufacturer
30 Dec 2010
(MENAFN) Abdullah Al-Othman, president of King Saud University (KSU), said that the Riyadh based university announced Wednesday that it received an offer from Mowakaba for Industrial Development & Overseas Commerce (MIDROC) for investing $275 million in KSU’s car manufacturing company, reported Arab News.
Al-Othman also said that the agreement grants MIDROC fifty five percent of the new company. He also said that this agreement comes only two days after South Korea�s Digm Automotive Technologies signed a deal with KSU acquiring ownership of 15 percent of stakes.
Al-Othman added that the remaining 30 percent of shares would be sold to the Public Investment Fund, the Pensions Fund, the GOSI Fund and the University Education Fund.
The new car manufacturer would make low-cost cars within a price range of $9,331 and $12,000.
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