In order to fulfill our obligations under the contract signed between our Company and C.N Romtehnica S.A., representing the Romanian Ministry of National Defense, regarding the procurement of 4x4 Tactical Wheeled Light Armored Vehicles, which was announced on November 27, 2024, a Joint Venture (JV) Agreement is signed between Otokar Land Systems SRL (Otokar SRL), our wholly-owned subsidiary established in Romania, and Automecanica SA (Automecanica) which is also based in Romania and operates in the defense industry on April 25, 2025.
According to the JV Agreement, each Otokar SRL and Automecanica SA will hold 50% shares, subject to joint management principle. The founding capital of the JV is determined as 20,000 RON, and it is envisaged that it will be increased to 500,000 RON at the completion following the fulfillment of the prerequisites, including obtaining the necessary permits within the scope of the project. In case of the non-fulfillment of the relevant prerequisites within 12 months, the parties have the right to terminate the Agreement.
In the above context, it is envisaged that the vehicles, which were stated to be manufactured in Romania in our previous disclosure related to the subject, will be manufactured by the JV in the facilities planned to be leased to the JV by Automecanica, using the kits and the parts to be exported by our Company within the framework of the related supply, technical support and license agreements planned to be signed between our Company and the JV at the completion. The JV also plans to provide engineering, marketing, and after sales services in Romania.
Important developments regarding the project will be shared with our investors.
This statement has been translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.