Auhua Clean Energy Plc Acquisition (3981B)
04 March 2014 - 3:53AM
UK Regulatory
TIDMACE
RNS Number : 3981B
Auhua Clean Energy Plc
03 March 2014
AUHUA CLEAN ENERGY PLC
("Auhua" or "the Company")
Acquisition of Ziolar Pte Ltd and Taiwan Ziolar Technology Co.
Ltd
3 March 2014: Auhua Clean Energy Plc (AIM: ACE) (the "Company"
or "Auhua"), the environmental technology group, is pleased to
announce that it and its subsidiary, Auhua Holdings Pte Ltd have
today entered into a definitive Sale and Purchase agreement
("S&P Agreement") with Ziolar Pte Ltd ("Ziolar"), Steve Peng,
Yu-Yao Eddie Chen, Riezen Pte Ltd , SSP Innovations Pte Ltd and
Taiwan Ziolar Technology Co. Ltd ("Taiwan Ziolar") for the
acquisition of (i) the entire business and assets of Ziolar (the
"Business Acquisition"); and (ii) the entire issued share capital
of Taiwan Ziolar, a company incorporated in Taiwan (the "Share
Acquisition") (together the "Ziolar Acquisition").
The Company has agreed to satisfy the total consideration of
US$4.5 million (approximately GBP2.7 million) for the Ziolar
Acquisition by issuing 6,944,400 Auhua Shares (the "Consideration
Shares") at 40 pence per Auhua Share to SSP Innovations (3,086,400
Auhua Shares), Steve Peng (2,314,800 Auhua Shares) and Yu-Yao Eddie
Chen (1,543,200 Auhua Shares). Of the Consideration Shares,
3,086,400 shares (equivalent to US$2.0 million) will be subject to
a lock-in for 18 months from the date of issue and the remainder of
the Consideration Shares (equivalent to US$2.5 million) will be
subject to a lock-in of 24 months from the date of issue.
The Ziolar Acquisition is subject to the fulfilment of certain
conditions precedent customary for these types of transactions such
as regulatory approvals. The expected completion date for the
Ziolar Acquisition is 30 April 2014.
The Ziolar Acquisition will provide Auhua with high-end solar
thermal panel manufacturing technology and assist it in its
transformation from being a successful Chinese domestic solar
split-unit water heater manufacturer to an international player.
The financial benefits of the acquisition are expected to start to
take effect from 2015.
Auhua specializes in energy efficient water heating solutions,
with a focus on the manufacture and sale of solar powered water
heating systems. Taiwan Ziolar is expected to bring
state-of-the-art thermal panel technology to Auhua, a vital
component in solar powered water heater systems. The proposed
Taiwan Ziolar acquisition is expected to add advanced coating
technology that would enhance Auhua's system efficiency performance
and reduce production costs, thereby helping to create a long-term
competitive advantage for Auhua in the solar thermal water heater
industry. Initial prototypes have shown a reduction in
manufacturing costs by up to 30% and efficiency yields equivalent
to the best international products. Patents have been filed in both
the United States and China. Further, the innovative technology
would enable the installation of smaller sized panels with good
efficiencies, better utilised in high rise buildings.
Commenting on the acquisition, David Sumner, non-executive
Chairman of Auhua, said: "The acquisition of Ziolar's business and
technologies will significantly broaden our technical capability,
enhance our competitive advantage and a stepping stone to our
internationalisation strategy."
---Ends---
Media Enquiries
Brunswick Carolina Danspeckgruber auhua@brunswickgroup.com
---------- ------------------------ -------------------------
Further information
Auhua Clean Energy David Sumner, non-executive +971 555 923198
plc Chairman davidjsumner@auhuacleanenergy.com
--------------------- ---------------------------- -------------------------------------
Grant Thornton Philip Secrett / Maureen +44 (0)20 7383 5100
UK LLP (Nominated Tai / Philip.j.secrett@uk.gt.com
Adviser) Jamie Barklem
--------------------- ---------------------------- -------------------------------------
Peat & Co Charlie Peat +44 (0)203 540 1721
(co-broker) Charlie.peat@peatandco.com
--------------------- ---------------------------- -------------------------------------
Cornhill Capital Nick Bealer +44 (0)20 7710 9610
Limited (co-broker) nickb@cornhillcapital.com
--------------------- ---------------------------- -------------------------------------
Beaufort Securities Guy Wheatley +44(0)20 7832 8300
(co-broker) Guy.Wheatley@beaufortsecurities.com
--------------------- ---------------------------- -------------------------------------
About Auhua:
Auhua Clean Energy (www.auhuacleanenergy.com) is an
environmental technology group based in the Shandong Province of
Eastern China specialising in the development and application of
green energy and energy efficient solar water heating solutions. In
particular, the Group is focused on the manufacture and sale of
split-unit solar water heating systems. Auhua Clean Energy operates
through its wholly owned subsidiaries Shandong Auhua New Energy
Co., Ltd and Weihua Auhua New Energy Co., Ltd., of which Auhua
Holdings Pte Ltd is the intermediate holding company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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