BEIJING, Sept. 9 /PRNewswire-Asia-FirstCall/ -- Qiao Xing
Mobile Communication Co., Ltd. (NYSE: QXM) ("QXM" or the
"Company"), a manufacturer of mobile handsets in the People's Republic of China (the "PRC"),
today announced that it has received a proposal from its parent
company, Qiao Xing Universal Resources, Inc. (Nasdaq: XING, or
"XING"), regarding the acquisition of all outstanding ordinary
shares of QXM that XING does not currently own, by way of a Scheme
of Arrangement (the "Proposed Transaction") under British Virgin Islands law. The Proposed
Transaction, if completed, would result in QXM becoming a
privately-held company.
XING has proposed to offer 1.9 shares of its common stock plus
US$0.80 in cash for each QXM share
held by persons other than XING (the "Minority Shareholders"). XING
filed its letter of intent with the Securities and Exchange
Commission (the "SEC") on Form 6-K on September 8, 2010. The letter of intent is
available on the SEC's website at: http://tinyurl.com/LOA-XING
.
QXM's Board of Directors established a committee consisting
solely of independent and disinterested directors (the "Special
Committee") to, among other things, evaluate whether the Proposed
Transaction is in the best interests of the Company and whether it
is fair and equitable to the Minority Shareholders. The Special
Committee has retained legal and financial advisors to assist it in
evaluating the Proposed Transaction and exploring alternatives.
XING has requested that the Company respond to its proposal by
September 17, 2010 and indicated that
it is not interested in selling its position in the Company to a
third party at this time. XING currently owns approximately 61% of
the Company's outstanding shares. XING has also indicated that it
may go forward with its proposed offer even if it is not
recommended by the Special Committee. The Proposed Transaction is
subject to certain customary conditions.
About Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd. is a domestic
manufacturer of mobile handsets in China. The Company manufactures and sells
mobile handsets based primarily on the GSM, TD-SCDMA, and WCDMA
technologies. It operates its business primarily through CEC
Telecom Co., Ltd., its 96.6%-owned subsidiary in China. Through its manufacturing facility in
Huizhou, Guangdong Province, China, and two research and development
centers in Huizhou and
Beijing, the Company develops,
produces and markets a wide range of mobile handsets, with
increasing focus on differentiated products that generally generate
higher profit margins. For more information, please visit
http://www.qxmc.com .
Safe Harbor Statement
This announcement contains forward-looking statements. In some
cases, these forward-looking statements can be identified by words
or phrases such as "aim," "anticipate," "believe," "continue,"
"estimate," "expect," "intend," "is/are likely to," "may," "plan,"
"potential," "will" or other similar expressions. Statements that
are not historical facts, including statements about QXM's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement. Information regarding
these factors is included in our filings with the Securities and
Exchange Commission. QXM does not undertake any obligation to
update any forward-looking statement, except as required under
applicable laws. All information provided in this press release is
as of September 9, 2010, and QXM
undertakes no duty to update such information, except as required
under applicable laws.
For further information, contact:
Ms. Lucy Wang, Vice President
Qiao Xing Mobile Communication Co., Ltd.
Phone: +86-10-8219-3883
Email: wangjinglu@cectelecom.com
SOURCE Qiao Xing Mobile Communication Co., Ltd.
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