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Wonder to Buy Controlling Stake in Jinan Worldwide Auto Parts

2008-10-23    Source:english.chinabuses.com

Recnetly, China-based automotive electrical parts maker Wonder Auto Technology, Inc. (WATG: News ) said it has signed an agreement on October 1 to acquire 65% stake in rival Jinan Worldwide Auto Parts Co.


Wonder Auto said it would pay about RMB 80 million for the controlling stake in Jinan Worldwide. However, the price of the stake would be adjusted either upwards or downwards depending on whether Jinan Worldwide's audited net income for fiscal 2008 is lower than RMB 19.48 million or higher than RMB 22.88 million.


Qingjie Zhao, the chief executive officer and chairman of Wonder Auto stated, "Through the acquisition, we expect our current products to penetrate into JWAA's main market - the Chinese diesel engine market, and JWAA's product to penetrate into Wonder Auto's main market - the Chinese gasoline engine market."


Some of Jinan Worldwide's top customers are Shanghai VW, Tianjin Toyota, Ford Motor Co. (F), FAW Auto, Chery Auto, Geely Auto, Cummins Engine, Weifang Diesel Engine, and Shanghai Diesel Engine.


WATG is currently trading down 62 cents or 12.53% at $4.33.


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