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Ming Yang Wind Power Buys Chinese Wind Turbine Equipment Maker.

M2 EQUITYBITES-May 19, 2015-Ming Yang Wind Power Buys Chinese Wind Turbine Equipment Maker

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19 May 2015 - Chinese wind energy solution provider China Ming Yang Wind Power Group Ltd. (NYSE: MY) has entered into share purchase agreements under which it has acquired a 99% stake in Cayman Islands-based electrical component maker China Smart Electric Group Ltd., the company said.

China Smart owns all of the equity interest in Wise Renergy Holdings Ltd., a Hong Kong company, which in turn owns all of the equity interests in mainland China-based subsidiaries, Tianjin REnergy Electrical Co., Ltd. and Tianjin Ruiyuan Electrical Co., Ltd.

The closing of the acquisition of the 99% interest in China Smart is expected to occur on or about 20 May 2015. Ming Yang expects to acquire the remaining 1% stake in RENergy in the near future.

In exchange for a 100% stake in RENergy, Ming Yang will pay a total purchase consideration of approximately RMB 925.4m (USD 149m).

This consideration will be paid in a combination of cash and newly issued shares in Ming Yang.

The cash portion of the purchase consideration will comprise RMB 300 m (USD 48.3m), with 60% of this amount to be paid within three months, 20% to be paid within six months, and the remaining 20% to be paid within twelve months, from 18 May 2015.

Ming Yang Wind said that the share portion of the purchase consideration will comprise 28,861,709 ordinary shares in Ming Yangwhich are to be newly issued at USD 3.49 per ordinary share, representing a premium of 5.9%, 14.5% and 19.6%, respectively, compared with the 30, 60 and 90 trading days volume-weighted average price of Ming Yang's American Depositary Shares, each representing one ordinary share of Ming Yang, as of 15 May 2015.

Ling Wu, who is the wife of Chuanwei Zhang, Ming Yang's chairman and chief executive officer, is one of a group of sellers who have agreed to sell to Ming Yang certain entities holding the shares in China Smart. Chuanwei Zhang declared his material interest in the acquisition to Ming Yang's board of directors. China Ming Yang Wind Power Group Ltd. (NYSE: MY) is a wind energy solution provider in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines, including cutting-edge SCD (Super Compact Drive) solutions, and providing post-sales value-added maintenance and technology upgrade services to wind farm owners.

RENergy is engaged in the manufacture, sale, research and development of electrical system equipment. It is China's largest supplier of core components for wind turbine generators including components such as main control systems, pitch control systems and converters.

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Publication:M2 EquityBites (EQB)
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Date:May 19, 2015
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