QXM announces proposal from parent company XING for purchase of minority shareholdings.
M2 EQUITYBITES-September 10, 2010-QXM announces proposal from parent company XING for purchase of minority shareholdings(C)2010 M2 COMMUNICATIONS http://www.m2.com
Qiao Xing Mobile Communication Co Ltd (QXM) (NYSE:QXM), a manufacturer of mobile handsets in the Peoplea[euro](tm)s Republic of China, revealed yesterday that it has received a proposal from its parent company, Qiao Xing Universal Resources Inc (Nasdaq: XING), for the acquisition of all outstanding ordinary shares of QXM that XING does not currently own.
The acquisition is by way of a a[euro]Scheme of Arrangementa[euro](tm) 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 USD0.80 in cash for each QXM share held by persons other than XING. XING has also filed its letter of intent with the Securities and Exchange Commission on Form 6-K on 8 September 2010.
QXM said that its board of directors has established a committee consisting solely of independent and disinterested 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 QXM to respond to its proposal by 17 September 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 QXMa[euro](tm)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.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Sep 10, 2010|
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