BEIJING, Sept. 22 /PRNewswire-Asia-FirstCall/ -- Qiao Xing
Mobile Communication Co., Ltd. (NYSE: QXM), a manufacturer of
mobile handsets in the People's Republic
of China, today announced that the special committee of its
board of directors has provided a letter to Qiao Xing Universal
Resources, Inc. (Nasdaq: XING, or "XING") stating as follows:
The Special Committee (the "Special Committee") of the board of
directors of Qiao Xing Mobile Communication Co., Ltd ("QXM") wishes
to provide you with an update with respect to the status of its
response to the offer of Qiao Xing Universal Resources, Inc
("XING") to acquire all of the outstanding shares of QXM that it
does not currently own (the "Minority Shares"), by way of a Scheme
of Arrangement under British Virgin
Islands law (the "Proposed Offer"). The Special Committee is
continuing its process to evaluate the Proposed Offer with the
assistance of its advisors and, as you may be aware, has requested
additional information from both QXM and XING. The Special
Committee will respond to the Proposed Offer as soon as is
practicable. However, the Special Committee will not have completed
its work in time to meet the September 22,
2010 response deadline that XING has imposed. Please be
assured that the Special Committee is working carefully and
diligently with its advisors to evaluate the Proposed Offer in a
manner consistent with the best interests of QXM and the holders of
the Minority Shares.
In this regard, the Special Committee has received, and is
considering, communications from several institutional shareholders
of QXM in which such shareholders have indicated that they did not
believe the Proposed Offer was sufficient and that they did not
support the Proposed Offer, noting among other things that as of
June 30, 2010 both the net asset
value per share, and the cash value per share, of QXM was
substantially in excess of the value per share of QXM represented
by the Proposed Offer. This information is relevant. We have
provided copies of such communications to XING for XING's
information and consideration.
About Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd. is a manufacturer of
mobile handsets in China. QXM
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, QXM 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 22, 2010, and QXM
undertakes no duty to update such information, except as required
under applicable laws.
For further information, please 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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