The first vice premier of the Republic of Belarus Mr. V. Semashko has voiced the terms and conditions of the deal with the Franck Muller Group on selling the control stock of the watchmaker “Luch” – open joint-stock company “Minsk Watch Plant”.
According to Mr. Semashko the deal will take two stages: during the first two-years stage the plant will be provided with the new machinery and equipment as well as introduction of new technology. $ 10 million will be invested in the upgrade of the plant by the Franck Muller Group in exchange for 52% of shares of the joint venture. The rest 48% of shares the watch group hopes to get in trust managing. Franck Muller is also planning to lease with the further right of redemption the premises of the plant whose total square is 52,000 square meters.
The second stage of the deal stipulates construction of the new plant near the capital of Belarus on the site whose total square is 23 hectares. During the second stage the Swiss investor is planning to be the owner of 80% of shares and later to purchase all the rest shares of the plant. According to Vartan Simakes, Franck Muller Groupis able to make the quality of Luch watches better and present them at international market.
During a meeting with President of Belarus Alexander Lukashenko Mr. sirmakes said: “We want to reorganize Minsk Watch Plant, to create an image and promote the Luch brand in the international market. I think you will be proud of the Luch products”.
He also informed the President of several projects that the Swiss Group is ready to implement jointly with Minsk Watch Plant. The company plans to design a special series of watches for the World Ice Hockey Championship 2014. “We want to make exactly 2014 pieces. They will sell well as collector’s items all over the world,” the businessman said.
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