Zhongshan Broad-Ocean Motor Co., Ltd. completed the acquisition of 52% stake in Prestolite Electric Ltd. from Prestolite Electric Inc., Beijing Jingruizhu Science and Technology Co., Ltd. and a Canghzhou-based company for approximately CNY 800 million.
January 23, 2014 at 11:00 pm EST
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Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) agreed to acquire a 72.77% stake in Prestolite Electric (Beijing) Ltd. from Prestolite Electric Inc., Beijing Jingruizhu Science and Technology Co., Ltd. and a Canghzhou-based company for CNY 1.1 billion on October 11, 2013. Post transaction, Zhongshan Broad-Ocean Motor Co., Ltd. will directly and indirectly holds 77.77% stake in Prestolite Electric (Beijing) Ltd. Zhongshan Broad-Ocean will use the proceeds of a CNY 1.1 billion private placement to fund this deal. Prestolite Electric (Beijing) Ltd. has net income of CNY 117.9 million, revenues CNY 923.6 million, total assets of CNY 874.9 million, net assets of CNY 360.1 million and operating profit of about CNY 139.9 million. The transaction has been unanimously approved by the Board of Directors of Zhongshan Broad-Ocean Motor on October 11, 2013.
As on January 6, 2014, Zhongshan Broad-Ocean Motor signed supplementary agreement to acquire a 72.77% stake in Prestolite Electric (Beijing) Ltd. The transaction was approved by business council of Beijing City on January 13, 2014. As on January 17, 2014, Zhongshan Broad-Ocean transferred first payment of CNY 395.05 million ($64.85 million). As on January 24, 2014, Zhongshan Broad-Ocean transferred second payment of CNY 198.25 million ($32.5 million) and third payment of CNY 118.95 million ($19.5 million) to be made within one month of completion of sale of 52% stake. All the conversions has been done through www.oanda.com as on January 17, 2014. As on January 24, 2014, Zhongshan Broad-Ocean acquired 52% stake in Prestolite Electric (Beijing). Jingtian & Gongcheng acted as legal advisor to Zhongshan Broad-Ocean. Goldman Sachs acted as financial advisor to Prestolite Electric Incorporated. Miller Canfield acted as legal advisor for Prestolite Electric (Beijing) Ltd.
Zhongshan Broad-Ocean Motor Co., Ltd. (SZSE:002249) completed the acquisition of 52% stake in Prestolite Electric (Beijing) Ltd. from Prestolite Electric Inc., Beijing Jingruizhu Science and Technology Co., Ltd. and a Canghzhou-based company for approximately CNY 800 million on January 24, 2014.
ZHONGSHAN BROAD-OCEAN MOTOR CO., LTD is an electrical appliance manufacturer. The Company operates its businesses through four segments. The Household Appliances and Household Electrical Appliances segment provides air conditioning load motors, washing machines/dryer motors and others. The New Energy Vehicle Powertrain System segment provides new energy vehicles drive motors and controllers, among others. The Vehicle Rotating Electrical Appliances segment includes traditional car starters and generators. The New Energy Vehicles Operating Platform segment is engaged in the new energy car rental and Internet custom car, new energy vehicle charging station operation, charge pile construction and the provision of other operation and supporting services. The Company conducts its businesses within domestic and overseas markets.
Zhongshan Broad-Ocean Motor Co., Ltd. completed the acquisition of 52% stake in Prestolite Electric Ltd. from Prestolite Electric Inc., Beijing Jingruizhu Science and Technology Co., Ltd. and a Canghzhou-based company for approximately CNY 800 million.
ZHONGSHAN BROAD-OCEAN MOTOR CO., LTD. 
