QAR, LLC cancelled the acquisition of the remaining 92.82% stake in China Power Equipment, Inc..
January 09, 2014 at 09:30 am IST
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QAR, LLC made an offer to acquire the remaining 92.82% stake in China Power Equipment, Inc. (OTCPK:CPQQ) for $9.1 million on January 3, 2014. QAR, LLC will buy all of the outstanding shares and options of China Power at a price of $0.50 per share in cash. China Power Equipment's Board of Directors can accept an unsolicited superior proposal upon payment of a termination fee equal to 5% of the transaction value plus reimbursement of the transaction expenses. This term sheet will be considered void if it is not executed by China Power Equipment prior to January 9, 2014. Transaction will be structured as a merger agreement. The transaction is subject to due diligence, approval by the China Power's stockholders of the merger agreement, receipt of any and all required regulatory approvals, third party consents and preparation of definitive documentation. The transaction will not be subject to any financing conditions. China Power's Board of Directors unanimously declined the offer on January 9, 2014. It is contemplated that the closing will take place in the second calendar quarter of 2014.
QAR, LLC cancelled the acquisition of the remaining 92.82% stake in China Power Equipment, Inc. (OTCPK:CPQQ) on January 9, 2014. The Board of Directors of China Power Equipment, Inc. convened a meeting to address the offer and unanimously determined to decline it.
China Power Equipment, Inc. (China Power) is a China-based company engaged in designing, manufacturing, and distributing amorphous alloy transformer cores and amorphous alloy transformers. The Companyâs devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industry. The Company conducts its business through its operating company, Xiâan Amorphous Alloy Zhongxi Transformer Co., Ltd. (Zhongxi), a Peopleâs Republic of China (PRC) Company that is controlled through its wholly owned PRC-based subsidiary An Sen (Xi'an) Power Science & Technology Co., Ltd. (An Sen), a wholly foreign-owned enterprise (WOFE). The Companyâs transformers consume 70% less electricity to operate than traditional transformers. Its products generate fewer pollutants, while retaining more electricity.