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Special Committee of Qiao Xing Mobile Communication Co., Ltd. Informs Parent Company that it Continues to Analyze Parent's Acquisition Proposal
BEIJING, Sept. 22 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Mobile
Communication Co., Ltd. (NYSE: QXM), a manufacturer of mobile handsets in the
People's Republic of China, today announced that the special committee of its
board of directors has provided a letter to Qiao Xing Universal Resources, Inc.
(Nasdaq: XING, or "XING") stating as follows:
The Special Committee (the "Special Committee") of the board of directors
of Qiao Xing Mobile Communication Co., Ltd ("QXM") wishes to provide you with
an update with respect to the status of its response to the offer of Qiao Xing
Universal Resources, Inc ("XING") to acquire all of the outstanding shares of
QXM that it does not currently own (the "Minority Shares"), by way of a Scheme
of Arrangement under British Virgin Islands law (the "Proposed Offer"). The
Special Committee is continuing its process to evaluate the Proposed Offer
with the assistance of its advisors and, as you may be aware, has requested
additional information from both QXM and XING. The Special Committee will
respond to the Proposed Offer as soon as is practicable. However, the Special
Committee will not have completed its work in time to meet the September 22,
2010 response deadline that XING has imposed. Please be assured that the
Special Committee is working carefully and diligently with its advisors to
evaluate the Proposed Offer in a manner consistent with the best interests of
QXM and the holders of the Minority Shares.
In this regard, the Special Committee has received, and is considering,
communications from several institutional shareholders of QXM in which such
shareholders have indicated that they did not believe the Proposed Offer was
sufficient and that they did not support the Proposed Offer, noting among
other things that as of June 30, 2010 both the net asset value per share, and
the cash value per share, of QXM was substantially in excess of the value per
share of QXM represented by the Proposed Offer. This information is relevant.
We have provided copies of such communications to XING for XING's information
and consideration.
About Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd. is a manufacturer of mobile
handsets in China. QXM manufactures and sells mobile handsets based primarily
on the GSM, TD-SCDMA, and WCDMA technologies. It operates its business
primarily through CEC Telecom Co., Ltd., its 96.6%-owned subsidiary in China.
Through its manufacturing facility in Huizhou, Guangdong Province, China, and
two research and development centers in Huizhou and Beijing, QXM develops,
produces and markets a wide range of mobile handsets, with increasing focus on
differentiated products that generally generate higher profit margins. For
more information, please visit http://www.qxmc.com .
Safe Harbor Statement
This announcement contains forward-looking statements. In some cases,
these forward-looking statements can be identified by words or phrases such as
"aim," "anticipate," "believe," "continue," "estimate," "expect," "intend,"
"is/are likely to," "may," "plan," "potential," "will" or other similar
expressions. Statements that are not historical facts, including statements
about QXM's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statement. Information regarding these
factors is included in our filings with the Securities and Exchange Commission.
QXM does not undertake any obligation to update any forward-looking statement,
except as required under applicable laws. All information provided in this
press release is as of September 22, 2010, and QXM undertakes no duty to
update such information, except as required under applicable laws.
For further information, please contact:
Ms. Lucy Wang, Vice President
Qiao Xing Mobile Communication Co., Ltd.
Phone: +86-10-8219-3883
Email: wangjinglu@cectelecom.com
SOURCE Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd.
CONTACT: Lucy Wang of Qiao Xing Mobile Communication Co., Ltd., +86-10-8219-3883, wangjinglu@cectelecom.com
Web Site: http://www.qxmc.com
Special Committee of Qiao Xing Mobile Communication Co., Ltd. Informs Parent Company that it Continues to Analyze Parent's Acquisition Proposal
BEIJING, Sept. 22 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Mobile
Communication Co., Ltd. (NYSE: QXM), a manufacturer of mobile handsets in the
People's Republic of China, today announced that the special committee of its
board of directors has provided a letter to Qiao Xing Universal Resources, Inc.
(Nasdaq: XING, or "XING") stating as follows:
The Special Committee (the "Special Committee") of the board of directors
of Qiao Xing Mobile Communication Co., Ltd ("QXM") wishes to provide you with
an update with respect to the status of its response to the offer of Qiao Xing
Universal Resources, Inc ("XING") to acquire all of the outstanding shares of
QXM that it does not currently own (the "Minority Shares"), by way of a Scheme
of Arrangement under British Virgin Islands law (the "Proposed Offer"). The
Special Committee is continuing its process to evaluate the Proposed Offer
with the assistance of its advisors and, as you may be aware, has requested
additional information from both QXM and XING. The Special Committee will
respond to the Proposed Offer as soon as is practicable. However, the Special
Committee will not have completed its work in time to meet the September 22,
2010 response deadline that XING has imposed. Please be assured that the
Special Committee is working carefully and diligently with its advisors to
evaluate the Proposed Offer in a manner consistent with the best interests of
QXM and the holders of the Minority Shares.
In this regard, the Special Committee has received, and is considering,
communications from several institutional shareholders of QXM in which such
shareholders have indicated that they did not believe the Proposed Offer was
sufficient and that they did not support the Proposed Offer, noting among
other things that as of June 30, 2010 both the net asset value per share, and
the cash value per share, of QXM was substantially in excess of the value per
share of QXM represented by the Proposed Offer. This information is relevant.
We have provided copies of such communications to XING for XING's information
and consideration.
About Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd. is a manufacturer of mobile
handsets in China. QXM manufactures and sells mobile handsets based primarily
on the GSM, TD-SCDMA, and WCDMA technologies. It operates its business
primarily through CEC Telecom Co., Ltd., its 96.6%-owned subsidiary in China.
Through its manufacturing facility in Huizhou, Guangdong Province, China, and
two research and development centers in Huizhou and Beijing, QXM develops,
produces and markets a wide range of mobile handsets, with increasing focus on
differentiated products that generally generate higher profit margins. For
more information, please visit http://www.qxmc.com .
Safe Harbor Statement
This announcement contains forward-looking statements. In some cases,
these forward-looking statements can be identified by words or phrases such as
"aim," "anticipate," "believe," "continue," "estimate," "expect," "intend,"
"is/are likely to," "may," "plan," "potential," "will" or other similar
expressions. Statements that are not historical facts, including statements
about QXM's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statement. Information regarding these
factors is included in our filings with the Securities and Exchange Commission.
QXM does not undertake any obligation to update any forward-looking statement,
except as required under applicable laws. All information provided in this
press release is as of September 22, 2010, and QXM undertakes no duty to
update such information, except as required under applicable laws.
For further information, please contact:
Ms. Lucy Wang, Vice President
Qiao Xing Mobile Communication Co., Ltd.
Phone: +86-10-8219-3883
Email: wangjinglu@cectelecom.com
SOURCE Qiao Xing Mobile Communication Co., Ltd.
Qiao Xing Mobile Communication Co., Ltd.
CONTACT: Lucy Wang of Qiao Xing Mobile Communication Co., Ltd., +86-10-8219-3883, wangjinglu@cectelecom.com
Web Site: http://www.qxmc.com