Geely: We Don't Need Any More London Taxi

A bit more than a week ago, we reported that Geely might want to raise its stake in the London black cab builder Manganese Bronze from currently 20 percent to more than 51 percent. Ok, story, sit over there under the sign that says “Chinese stories, not happening.”

Geely had received an offer letter from Manganese Bronze to purchase 20 million shares, which would increase Geely’s shares in the company to 51.68 percent. Now, Manganese received an answer: “Bu yao.” No want.

In a filing at the London Stock Exchange, “Manganese Bronze, the leading manufacturer of the distinctive London black taxi, announces it has been informed that the Board of Geely Automobile Holdings Limited (“Geely”) has decided not to proceed with the Proposed Placing.”

But not to worry, business will continue as usual:

“Geely has confirmed its commitment to the joint venture with Manganese Bronze, Shanghai LTI Automobile Components Company Ltd (“SLTI”), and it has confirmed that future operational plans remain unaffected. SLTI will continue to supply Manganese Bronze with components for its UK manufacturing operation as well as producing lower cost London taxis for international sale.”

Now what about the money? Will the meter go tilt at Manganese?

“Notwithstanding Geely’s withdrawal from the Proposed Placing, and as announced at the time of Admission to AIM, the Board of Manganese Bronze reiterates that: ‘The board of directors of the Company have no reason to believe that the working capital available to it or its group will be insufficient for at least twelve months from the date of its admission to trading on AIM’.”

Reuters doesn’t buy it and thinks that Manganese “may need to look for a new investor.”

If they don’t find one, then Geely will get a really cheap cab ride.