Beijing Zhumu Culture Communication Company, Ltd. completed the acquisition of 80% stake in Tianjin Tongguang Group Digital Communication Company, Ltd.
May 15, 2014 at 12:00 am EDT
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Beijing Zhumu Culture Communication Company, Ltd. entered into a share purchase agreement to acquire 80% stake in Tianjin Tongguang Group Digital Communication Company, Ltd., 100% stake in Profit Harvest Company Ltd. and 100% stake in Nollec Wireless Company Ltd. from ZOOM Technologies, Inc. (NasdaqCM:ZOOM), Jiangsu Leimone Electronics Co., Ltd and Gold Lion Holding Limited for CNY 200 million on December 31, 2012. The purchase price is, subject to adjustment pending an appraisal by an independent third party appraiser. Gold Lion Holding Limited will sell 100% stake of Profit Harvest Company, Jiangsu Leimone Electronics will sell 80% stake of Tianjin Tongguang Group Digital Communication and ZOOM Technologies will sell 100% stake of Nollec Wireless Company.
Beijing Zhumu Culture Communication deposited the entire amount of purchase price into an escrow account, to be released to ZOOM Technologies upon the final closing of the sale, which will be held 30 days after ZOOM Technologies receives all the requisites corporate and regulatory approvals. The closing of Profit Harvest transaction occurred on December 31, 2012. The final closing of the transaction is anticipated to take place within the first quarter of 2013. ZOOM Technologies intends to use the cash proceeds from the sale of the assets to acquire similar businesses in the U.S. The completion of Nollec Wireless Company transaction occured on April 5, 2013. The sale of Tianjin Tongguang Group Digital is expected to be completed on or about March 15, 2014. Ellenoff Grossman & Schole LLP acted as legal advisor for ZOOM Technologies, Inc.
Beijing Zhumu Culture Communication Company, Ltd. completed the acquisition of 80% stake in Tianjin Tongguang Group Digital Communication Company, Ltd. on May 15, 2014.
Zoom Technologies, Inc. (Zoom) is a holding company and owns subsidiaries, primarily engaged in technology and communications businesses in China. The Company owns Gold Lion Holding Limited, and through it, owns 100% of Profit Harvest Corporation Ltd, which further owns 100% of Celestial Digital Entertainment, Ltd., a mobile platform video game development company. The Company, through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co. Ltd (Jiangsu Leimone), owns 80% of Tianjin Tong Guang Group Digital Communication Co., Ltd (TCB Digital). Both TCB Digital and Jiangsu Leimone are in the business of manufacturing, research and development, and sales of electronic components for third generation mobile phones, wireless communication circuitry, GPS equipment, and related software products.
Beijing Zhumu Culture Communication Company, Ltd. completed the acquisition of 80% stake in Tianjin Tongguang Group Digital Communication Company, Ltd.