SHENYANG, China, Jan. 25 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power" or "the Company"), a leading provider of distributed power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, today announced it has received the Approval Certificate of Foreign Investment from the National Development & Reform Commission ("NDRC") and Ministry of Commerce in China to complete the acquisition of EVATECH Co., Ltd. ("EVATECH") of Kyoto, Japan, today.
On September 16, 2009, the Company signed a definitive contract to acquire 100% of EVATECH, a 22-year-old designer and manufacturer of industrial equipment for LCDs (liquid crystal displays), PDPs (plasma display panels) and, more recently, amorphous-silicon (a-Si) photovoltaic (PV) panels. The total consideration is US$49.9 million in cash. EVATECH is currently undergoing a rehabilitation process in the courts of Japan related to its corporate and debt restructuring. A-Power is to fund 100% of the transaction, 45% of which is expected to be reimbursed from foreign-investment grants from various levels of the local government in China. The transaction was expected to be funded by the Company and close prior to December 31, 2009; however, the Company applied to the courts in Japan for an extension of the funding date to January 25, 2010, which was granted.
A-Power Energy Generation Systems Ltd. ("A-Power"), through its China-based operating subsidiaries, is the largest provider of distributed power generation systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy market and has built China's largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province, with a total annual production capacity of 1,125MW. In March 2009, A-Power entered into an agreement to establish a Joint Venture partnership with GE Drivetrain Technologies to produce wind turbine gearboxes in Shenyang. In addition to the establishment of strategic relationships with world's leading wind energy design and engineering companies, A-Power has formed joint research programs with Tsinghua University and the China Academy of Sciences to develop and commercialize other renewable energy technologies. For more information, please visit http://www.apowerenergy.com.
Safe Harbor Statement
This press release may contain forward-looking statements. Any such statement is made within the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and other similar statements. Statements that are not historical facts, including statements relating to anticipated future earnings, margins, and other operating results, future growth, construction plans and anticipated capacities, production schedules and entry into expanded markets are forward-looking statements. Such forward-looking statements, based upon the current beliefs and expectations of our management, are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements, including but not limited to, the risk that: we may not be able to complete the acquisition with our acquisition target; our acquisition target is undergoing restructuring in local courts, which may interfere with our ability to close the acquisition of the target company; our acquisition target's restructuring process in local courts relates to financial difficulties it experienced in the operation of its business, and it may continue to experience financial difficulties after we acquire it; we may not be able to obtain all of, or any of, the government subsidies related to the acquisition of the target company; our acquisition consideration is in the form of cash payment, which is a significant amount of our total cash balance available as of September 30, 2009, and this may affect our liquidity, and may result in our inability to provide working capital for our ongoing operations and expansion; our technicians may have difficulty adapting to new technology; systems that we develop and install may contain design or manufacturing defects, which could result in reduced demand for our services and customer claims and uninsured liabilities; we expect to rely increasingly on our proprietary products and systems and on technology developed by our licensors, and if we or our licensors become involved in an intellectual property dispute, we may be forced to spend a significant amount of time and financial resources to resolve such intellectual property dispute, diverting time and resources away from our business and operations as well as other relevant risks detailed in our filings with the Securities and Exchange Commission, including those set forth in our annual report filed on Form 20-F/A for the fiscal year ended December 31, 2008. The information set forth herein should be read in light of such risks. We assume no obligation to update the information contained in this press release, except as required under applicable law.
For more information, please contact: John S. Lin Chief Operating Officer A-Power Energy Generation Systems Email: email@example.com Dixon Chen Investor Relations Grayling Tel: +1-646-284-9403 Email: firstname.lastname@example.org
SOURCE A-Power Energy Generation Systems, Ltd.