HARBIN, China, Nov. 23, 2010 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. ("Harbin Electric" or the "Company", Nasdaq: HRBN) a leading developer and manufacturer in the People's Republic of China of a wide array of electric motors, announced today that its Board of Directors has received a letter from the Company's Chairman and Chief Executive Officer, Mr. Tianfu Yang, regarding his previously announced proposal to take the Company private (the "Yang Proposal").
In his letter, Mr. Yang advised the Board that, by mutual agreement, Mr. Yang and Baring Private Equity Asia Group Limited ("Baring") have amended and restated their previously announced Consortium Agreement, pursuant to which they had agreed to work together exclusively on the Yang Proposal. The amended and restated agreement between Baring and Mr. Yang provides that Baring's participation in the Yang Proposal will consist solely of a right (but not an obligation) to provide up to 10% of the financing for the transaction, in the form of debt and/or equity and that Mr. Yang will not be restricted from seeking alternative sources of financing, in the form of debt and/or equity, for the transaction. Mr. Yang has further advised the Company that he intends to proceed with a proposal to take the Company private at the previously announced proposed price of $24.00 per share, that he will seek alternative sources of financing for the transaction, and that Goldman Sachs (Asia) LLC will continue to act as financial advisor to Mr. Yang in connection with the transaction.
As previously announced, a Special Committee of the Board of Directors was formed to, among other things, evaluate the Yang Proposal. The Committee will remain in place and continue its work, including evaluating any proposal presented by Mr. Yang as well as other proposals which the Company may receive. The Special Committee and its advisors will also review and evaluate other strategic alternatives for the Company.
No assurance can be given that the Yang Proposal, or any other transaction or strategic alternative, will be consummated. The Company does not intend to disclose further developments regarding these matters unless and until its Board of Directors determines there is a need to update the market.
About Harbin Electric, Inc.
Harbin Electric, headquartered in Harbin, China, is a leading developer and manufacturer of a wide array of electric motors with a focus on innovative, customized, and value-added products. Its major product lines include industrial rotary motors, linear motors, and specialty micro-motors. The Company's products are purchased by a broad range of domestic and international customers, including those involved in the energy industry, factory automation, food processing, packaging, transportation, automobile, medical devices, machinery and tool manufacturing, chemical, petrochemical, as well as in the metallurgical and mining industries. The Company operates four manufacturing facilities in China located in Xi'an, Weihai, Harbin, and Shanghai.
Harbin Electric has built a strong research and development capability by recruiting talent worldwide and through collaboration with top scientific institutions. The Company owns numerous patents in China and has developed award-winning products for its customers. Relying on its own proprietary technology, the Company developed an energy efficient linear motor driven oil pump, the first of its kind in the world, for the largest oil field in China. Its self-developed linear motor propulsion system is powering China's first domestically-made linear-motor-driven metro train. As China continues to grow its industrial base, Harbin Electric aspires to be a leader in the industrialization and technology transformation of the Chinese manufacturing sector. To learn more about Harbin Electric, visit http://www.harbinelectric.com.
Safe Harbor Statement
The actual results of Harbin Electric, Inc. could differ materially from those described in this press release. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in the Company's periodic filings with the U.S. Securities and Exchange Commission, including the factors described in the section entitled "Risk Factors" in its annual report on Form 10-K for the year ended December 31, 2009. The Company does not undertake any obligation to update forward-looking statements contained in the press release. This press release contains forward-looking information about the Company that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company's future performance, operations and products.
For investor and media inquiries, please contact: |
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Christy Shue |
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Harbin Electric, Inc. |
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Executive VP, Finance & Investor Relations |
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Tel: +1-631-312-8612 |
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Email: [email protected] |
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Kathy Li |
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Christensen Investor Relations |
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Tel: +1-212-618-1978 |
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Email: [email protected] |
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SOURCE Harbin Electric, Inc.
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