KAIFENG, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading metal valve manufacturer with operations in the People's Republic of China (the "PRC"), today announced that the Company has signed a letter of intent to acquire 100% ownership in Able Delight (Changsha) Valve Co., Ltd., ("Able Delight"), a leading valve manufacturing enterprise that specializes in manufacturing valves for the water supply and power supply industries. Consideration for the acquisition is approximately $15 million and the Company expects to complete the acquisition during the first quarter of 2010.
Able Delight, located in Changsha, Hunan Province, is a leading producer of butterfly valves, check valves and ball valves for hydropower plants, thermal power plants, nuclear power plants and water and sewage treatment applications. Able Delight has the capability to produce the largest butterfly valves in China with a maximum diameter of 5.5 meters.
The proposed transaction is subject to the satisfactory completion of due diligence and business negotiations by the Company, the finalization of terms for a definitive agreement, and the receipt of final approval from the Company's board of directors and any approvals required by the Chinese government.
"We are extremely pleased with the progress we have made so far in our negotiations with Able Delight, as we believe this acquisition will improve our position in key end-user markets in the water supply and power generation industries, in addition to strengthening our distribution network," said Mr. Siping Fang, Chairman and CEO of China Valves. "We hope to finalize our internal due diligence by the end of this month and complete the acquisition during the first quarter of 2010."
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., and Tai Zhou Tai De Valve Co., Ltd. is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best-known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products by extensive research and development and owns a number of patents. It enjoys significant domestic market shares and exports to Asia and Europe. For more information, visit http://www.cvalve.com .
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, successful completion of due diligence for pending acquisitions, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
For more information, please contact: China Valves Technology, Inc. Ray Chen, VP of Investor Relations Phone: +1-650-281-8375 +86-139-2527-9478 Email: firstname.lastname@example.org Web: http://www.cvalve.com CCG Investor Relations Crocker Coulson, President Phone: +1-646-213-1915 Email: email@example.com Web: http://www.ccgirasia.com
SOURCE China Valves Technology, Inc.