China Automotive (CAAS) to Sell Interest in Zhejiang Henglong for RMB 52M
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China Automotive Systems, Inc. (Nasdaq: CAAS), announced that its wholly owned subsidiary, Great Genesis Holdings Limited, has entered into a definitive agreement to sell its equity interest in Zhejiang Henglong & Vie Pump-Manu Co., Ltd., to the Zhejiang Vie Group, Great Genesis's joint venture partner in Zhejiang.
This transaction is subject to local regulatory authority approval.
According to the Agreement, Great Genesis will sell its 51% stake in Zhejiang to Vie Group for RMB52 million, which represents a 24% premium as compared to the May 20, 2012 estimated net book value of approximately RMB42 million. According to unaudited accounting information, Zhejiang's net sales for the first quarter of 2012 declined by approximately 25%, as compared to the same fiscal quarter of 2011, mainly due to lower sales volume. Zhejiang generated approximately $34,000 in net income during three-month period ended March 31, 2012.
This transaction is subject to local regulatory authority approval.
According to the Agreement, Great Genesis will sell its 51% stake in Zhejiang to Vie Group for RMB52 million, which represents a 24% premium as compared to the May 20, 2012 estimated net book value of approximately RMB42 million. According to unaudited accounting information, Zhejiang's net sales for the first quarter of 2012 declined by approximately 25%, as compared to the same fiscal quarter of 2011, mainly due to lower sales volume. Zhejiang generated approximately $34,000 in net income during three-month period ended March 31, 2012.
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