WUHAN, China, May 15, 2017 /PRNewswire/ -- China Automotive
Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a
leading power steering components and systems supplier in
China, today announced that its
Board of Directors (the "Board") has received a preliminary
non-binding proposal letter, dated May 14,
2017, from its Chairman, Mr. Hanlin
Chen, to acquire all of the outstanding shares of common
stock of the Company not already beneficially owned by Mr. Chen for
US$5.45 per share of common stock in
cash. Mr. Chen and his affiliates currently beneficially own
approximately 56.4% of the issued and outstanding shares of common
stock of the Company on a fully diluted and as-converted
basis. The proposal is expressly conditioned on approval by a
special committee of the Board comprised of independent directors
and is subject to a non-waivable condition requiring approval by a
majority vote of the Company's unaffiliated stockholders.
The Board has established a special committee of the Board (the
"Special Committee"), consisting of Mr. Arthur Wong, Mr. Robert
Tung and Mr. Guangxun Xu, to
consider the proposal. The Special Committee is empowered to, and
will be responsible for, among other things, investigating,
evaluating, negotiating and making a recommendation to the Board
with respect to the proposal. The Special Committee is also
empowered to retain its own independent advisors to assist in the
evaluation of the proposal and any alternative proposals.
The Company cautions that no decisions have been made by the
Special Committee or the Board with respect to the Company's
response to the proposal. There can be no assurance that any
definitive offer will be made by Mr. Chen or any other person, that
any definitive agreement will be executed relating to the proposal
or any other transaction, or that this or any other transaction
will be approved or consummated.
About China Automotive Systems, Inc.
Based in Hubei Province,
the People's Republic of China,
China Automotive Systems, Inc. is a leading supplier of power
steering components and systems to the Chinese automotive industry,
operating through eight Sino-foreign joint ventures. The Company
offers a full range of steering system parts for passenger
automobiles and commercial vehicles. The Company currently offers
four separate series of power steering with an annual production
capacity of over 5.5 million sets of steering gears, columns and
steering hoses. Its customer base is comprised of leading auto
manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group
Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd.
and Chery Automobile Co., Ltd. in China, and Chrysler Group LLC in North America. For more information, please
visit: http://www.caasauto.com.
Forward Looking Statements
This press release contains statements that are "forward-looking
statements" as defined under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements represent our
estimates and assumptions only as of the date of this press
release. These forward-looking statements include statements
regarding the qualitative and quantitative effects of the
accounting errors, the periods involved, the nature of the
Company's review and any anticipated conclusions of the Company or
its management and other statements that are not historical facts.
Our actual results may differ materially from the results described
in or anticipated by our forward-looking statements due to certain
risks and uncertainties. As a result, the Company's actual results
could differ materially from those contained in these
forward-looking statements due to a number of factors, including
those described under the heading "Risk Factors" in the Company's
Form 10-K annual report filed with the Securities and Exchange
Commission on March 30, 2017, and in documents subsequently
filed by the Company from time to time with the Securities and
Exchange Commission. We expressly disclaim any duty to provide
updates to any forward-looking statements made in this press
release, whether as a result of new information, future events or
otherwise.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
+1-646-726-6511
Email: Kevin.Theiss@awakenlab.com
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SOURCE China Automotive Systems, Inc.