Qiao Xing Universal Announces Extension of Time for Qiao Xing Mobile to Respond to Its Proposal to Acquire All Outstanding Shares of Qiao Xing Mobile
Poster: SySAdmin
Posted on September 17, 2010 at 6:21:01 PM
Qiao Xing Universal Announces Extension of Time for Qiao Xing Mobile to Respond to Its Proposal to Acquire All Outstanding Shares of Qiao Xing Mobile
HUIZHOU, China, Sept. 17 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Universal Resources, Inc. (Nasdaq: XING, the "Company" or "XING"), an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, today announced that it has determined to extend the time for the Special Committee (defined below) to respond to its offer to acquire all outstanding shares of Qiao Xing Mobile Communication Co., Ltd (NYSE: "QXM," or "QXMC") that it does not currently own, by way of a Scheme of Arrangement (the "Proposed Offer") under British Virgin Islands law to Wednesday, September 22, 2010. The Proposed Offer, if completed, will result in QXMC becoming a privately held company. The Company currently owns approximately 61.1% of the outstanding shares of QXMC.
The Company has proposed to issue 1.9 shares of its common stock plus US$0.80 in cash per share to shareholders of QXMC other than the Company (the "Minority Shareholders"). The Company believes that the Proposed Offer is fair and reasonable to the Minority Shareholders and in the best interests of the shareholders of both QXMC and the Company. The Company described the Proposed Offer in a letter dated September 8, 2010, addressed to a special committee of the board of directors of QXMC comprised of directors who are independent under the rules of the New York Stock Exchange and are not affiliated with the Company (the "Special Committee").
The Company had asked the Special Committee to advise it whether they believe they will be prepared to recommend to the Minority Shareholders that they accept the Proposed Offer by Friday, September 17, 2010. The Special Committee has advised the Company that it is working expeditiously with its advisers to evaluate the Proposed Offer, but needs additional time before responding. The Company is pleased to hear that the Special Committee is continuing to evaluate the Proposed Offer and has determined to extend the deadline for the Special Committee to respond to the Proposed Offer until Wednesday, September 22, 2010. The Company believes that the Proposed Offer can be completed in a more expeditious and cost-effective manner with the Special Committee's cooperation. However, if the Special Committee fails to respond to the Proposed Offer by Wednesday, September 22, 2010 or is not prepared to recommend to the Minority Shareholders that they accept the Proposed Offer by that time, the Company intends to proceed to make the Proposed Offer directly to the Minority Shareholders.
Mr. Ruilin Wu, the Company's Chairman and Chief Executive Officer, said, "We continue to firmly believe that this transaction is in the best interest of both companies' shareholders. We have confidence in the long-term prospects of the natural resources industry and are consolidating our resources to execute on our resources-focused strategy. We have achieved initial success in the resources industry with our Molybdenum mining business, which started commercial production in the second half of 2009. Our goal is to become a pure resource company with meaningful scale and we continue to evaluate opportunities to expand our mining resources in areas such as lead, zinc, copper and molybdenum."
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, China. The Company was previously one of the leading players of telecommunication terminal products in China, but made the strategic decision to diversify into the resources industry in 2007. In April 2009, the Company acquired the 100% equity interest in China Luxuriance Jade Company, Ltd ("CLJC"). CLJC, through its wholly owned Chinese subsidiaries, owns the rights to receive the expected residual returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining"), a large copper-molybdenum poly-metallic mining company in Inner Mongolia, China. Since then, the Company has further refined its strategy to become a pure resources company and is actively seeking additional acquisition targets in the resources industry.
Forward Looking Statements
This press release 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, without limitation, statements about Qiao Xing Universal Resources, Inc.'s beliefs and expectations with respect to the Proposed Offer, including the possibility that it may make the Proposed Offer directly to the Minority Shareholders, and its ability to further its resource focused strategy, 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. Qiao Xing Universal Resources, Inc. does not undertake any obligation to update any forward-looking statement. All information provided in this press release is as of September 17, 2010.
Additional Information and Where to Find It
Qiao Xing Universal Resources, Inc. plans to file a Schedule 13E-3 with the United States Securities and Exchange Commission (the "SEC") in connection with the Proposed Offer. The Schedule 13E-3 will contain additional information regarding the Proposed Offer, including, without limitation, information regarding the special meeting of shareholders of Qiao Xing Mobile Communication Co., Ltd that will be called to consider the Proposed Offer. The Schedule 13E-3 will contain important information about Qiao Xing Universal Resources, Inc., Qiao Xing Mobile Communication Co., Ltd, the Proposed Offer and related matters. Investors and shareholders should read the Schedule 13E-3 and the other documents filed with the SEC in connection with the Proposed Offer carefully before they make any decision with respect to the Proposed Offer. A copy of the Scheme of Arrangement with respect to the Proposed Offer will be an exhibit to the Schedule 13E-3. The Proposed Offer is expected to be exempt from the registration requirements of the United States Securities Act of 1933 Act by virtue of the exemption provided by Section 3(a)(10); however, it is possible that the offer may change forms such that the exemption provided by Section 3(a)(10) may no longer be available. In such a case Qiao Xing Universal Resources, Inc. may file a Form F-4 with respect to the Proposed Offer.
The Schedule 13E-3 and all other documents filed with the SEC in connection with the Proposed Offer will be available when filed free of charge at the SEC's web site at http://www.sec.gov. Additionally, the Schedule 13E-3 and all other documents filed with the SEC in connection with the Proposed Offer will be made available to investors or shareholders free of charge by calling or writing to:
Rick Xiao, Vice
Company Contact: President
Qiao Xing Universal
Resources
Phone: +86-752-282-0268
Email: rick@qiaoxing.com
Filing under Rule 425 under
the Securities Act of 1933
Filing by: Qiao Xing Universal Resources, Inc.
Subject Company: Qiao Xing Mobile Communication Co., Ltd
SEC File No. of Qiao Xing Mobile Communication Co., Ltd: 001-33430
This press release is issued for information purposes only and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor is it a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this press release in any jurisdiction in contravention of applicable law.
Neither the United States Securities and Exchange Commission nor any state securities commission has approved or disapproved of the Proposed Offer or securities to be issued in connection therewith, or passed upon the adequacy or accuracy of this press release, or the merits or fairness of the Proposed Offer. Any representation to the contrary is a criminal offense.
Company Contact:
Qiao Xing Universal Resources CCG Investor Relations Inc.
Rick Xiao, Vice President Mr. Ed Job, CFA
Phone: +86-752-282-0268 Phone: +86-1381-699-7314 (Shanghai)
Email: rick@qiaoxing.com Email: ed.job@ccgir.com
Source: Qiao Xing Universal Resources, Inc.
CONTACT: Company Contact: Qiao Xing Universal Resources, Rick Xiao,
Vice President, +86-752-282-0268, rick@qiaoxing.com; or CCG Investor Relations
Inc., Mr. Ed Job, CFA, +86-1381-699-7314 (Shanghai), ed.job@ccgir.com
HUIZHOU, China, Sept. 17 /PRNewswire-Asia-FirstCall/ -- Qiao Xing Universal Resources, Inc. (Nasdaq: XING, the "Company" or "XING"), an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, today announced that it has determined to extend the time for the Special Committee (defined below) to respond to its offer to acquire all outstanding shares of Qiao Xing Mobile Communication Co., Ltd (NYSE: "QXM," or "QXMC") that it does not currently own, by way of a Scheme of Arrangement (the "Proposed Offer") under British Virgin Islands law to Wednesday, September 22, 2010. The Proposed Offer, if completed, will result in QXMC becoming a privately held company. The Company currently owns approximately 61.1% of the outstanding shares of QXMC.
The Company has proposed to issue 1.9 shares of its common stock plus US$0.80 in cash per share to shareholders of QXMC other than the Company (the "Minority Shareholders"). The Company believes that the Proposed Offer is fair and reasonable to the Minority Shareholders and in the best interests of the shareholders of both QXMC and the Company. The Company described the Proposed Offer in a letter dated September 8, 2010, addressed to a special committee of the board of directors of QXMC comprised of directors who are independent under the rules of the New York Stock Exchange and are not affiliated with the Company (the "Special Committee").
The Company had asked the Special Committee to advise it whether they believe they will be prepared to recommend to the Minority Shareholders that they accept the Proposed Offer by Friday, September 17, 2010. The Special Committee has advised the Company that it is working expeditiously with its advisers to evaluate the Proposed Offer, but needs additional time before responding. The Company is pleased to hear that the Special Committee is continuing to evaluate the Proposed Offer and has determined to extend the deadline for the Special Committee to respond to the Proposed Offer until Wednesday, September 22, 2010. The Company believes that the Proposed Offer can be completed in a more expeditious and cost-effective manner with the Special Committee's cooperation. However, if the Special Committee fails to respond to the Proposed Offer by Wednesday, September 22, 2010 or is not prepared to recommend to the Minority Shareholders that they accept the Proposed Offer by that time, the Company intends to proceed to make the Proposed Offer directly to the Minority Shareholders.
Mr. Ruilin Wu, the Company's Chairman and Chief Executive Officer, said, "We continue to firmly believe that this transaction is in the best interest of both companies' shareholders. We have confidence in the long-term prospects of the natural resources industry and are consolidating our resources to execute on our resources-focused strategy. We have achieved initial success in the resources industry with our Molybdenum mining business, which started commercial production in the second half of 2009. Our goal is to become a pure resource company with meaningful scale and we continue to evaluate opportunities to expand our mining resources in areas such as lead, zinc, copper and molybdenum."
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is an emerging Chinese resources company headquartered in Huizhou, Guangdong Province, China. The Company was previously one of the leading players of telecommunication terminal products in China, but made the strategic decision to diversify into the resources industry in 2007. In April 2009, the Company acquired the 100% equity interest in China Luxuriance Jade Company, Ltd ("CLJC"). CLJC, through its wholly owned Chinese subsidiaries, owns the rights to receive the expected residual returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining"), a large copper-molybdenum poly-metallic mining company in Inner Mongolia, China. Since then, the Company has further refined its strategy to become a pure resources company and is actively seeking additional acquisition targets in the resources industry.
Forward Looking Statements
This press release 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, without limitation, statements about Qiao Xing Universal Resources, Inc.'s beliefs and expectations with respect to the Proposed Offer, including the possibility that it may make the Proposed Offer directly to the Minority Shareholders, and its ability to further its resource focused strategy, 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. Qiao Xing Universal Resources, Inc. does not undertake any obligation to update any forward-looking statement. All information provided in this press release is as of September 17, 2010.
Additional Information and Where to Find It
Qiao Xing Universal Resources, Inc. plans to file a Schedule 13E-3 with the United States Securities and Exchange Commission (the "SEC") in connection with the Proposed Offer. The Schedule 13E-3 will contain additional information regarding the Proposed Offer, including, without limitation, information regarding the special meeting of shareholders of Qiao Xing Mobile Communication Co., Ltd that will be called to consider the Proposed Offer. The Schedule 13E-3 will contain important information about Qiao Xing Universal Resources, Inc., Qiao Xing Mobile Communication Co., Ltd, the Proposed Offer and related matters. Investors and shareholders should read the Schedule 13E-3 and the other documents filed with the SEC in connection with the Proposed Offer carefully before they make any decision with respect to the Proposed Offer. A copy of the Scheme of Arrangement with respect to the Proposed Offer will be an exhibit to the Schedule 13E-3. The Proposed Offer is expected to be exempt from the registration requirements of the United States Securities Act of 1933 Act by virtue of the exemption provided by Section 3(a)(10); however, it is possible that the offer may change forms such that the exemption provided by Section 3(a)(10) may no longer be available. In such a case Qiao Xing Universal Resources, Inc. may file a Form F-4 with respect to the Proposed Offer.
The Schedule 13E-3 and all other documents filed with the SEC in connection with the Proposed Offer will be available when filed free of charge at the SEC's web site at http://www.sec.gov. Additionally, the Schedule 13E-3 and all other documents filed with the SEC in connection with the Proposed Offer will be made available to investors or shareholders free of charge by calling or writing to:
Rick Xiao, Vice
Company Contact: President
Qiao Xing Universal
Resources
Phone: +86-752-282-0268
Email: rick@qiaoxing.com
Filing under Rule 425 under
the Securities Act of 1933
Filing by: Qiao Xing Universal Resources, Inc.
Subject Company: Qiao Xing Mobile Communication Co., Ltd
SEC File No. of Qiao Xing Mobile Communication Co., Ltd: 001-33430
This press release is issued for information purposes only and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor is it a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this press release in any jurisdiction in contravention of applicable law.
Neither the United States Securities and Exchange Commission nor any state securities commission has approved or disapproved of the Proposed Offer or securities to be issued in connection therewith, or passed upon the adequacy or accuracy of this press release, or the merits or fairness of the Proposed Offer. Any representation to the contrary is a criminal offense.
Company Contact:
Qiao Xing Universal Resources CCG Investor Relations Inc.
Rick Xiao, Vice President Mr. Ed Job, CFA
Phone: +86-752-282-0268 Phone: +86-1381-699-7314 (Shanghai)
Email: rick@qiaoxing.com Email: ed.job@ccgir.com
Source: Qiao Xing Universal Resources, Inc.
CONTACT: Company Contact: Qiao Xing Universal Resources, Rick Xiao,
Vice President, +86-752-282-0268, rick@qiaoxing.com; or CCG Investor Relations
Inc., Mr. Ed Job, CFA, +86-1381-699-7314 (Shanghai), ed.job@ccgir.com