Dragon Fu to Buy Qiao Xing Low-end Handset Subsidiary
PR Newswire, 9/02/09
Chinese fixed-line and mobile phone manufacturer Qiao Xing Universal Telephone (Nasdaq: XING) has signed a letter of intent to sell its mobile phone subsidiary, Qiao Xing Communication Holdings Limited, to Dragon Fu Investment, an independent third-party holding company planning to enter into China's consumer electronics industry.
Qiao Xing Communication Holdings primarily specializes in the indoor phone and low-end mobile phone business via its subsidiary Huizhou Qiao Xing Communication Industry Co., Ltd. Qiao Xing Communication Holdings recorded a loss of RMB 291.0 mln (USD 42.7 mln) in 2008, mainly due to the global economic downturn and increasingly intense competition.
According to the proposed transaction, Qiao Xing will sell 100% of its equity in Qiao Xing Communication Holdings to Dragon Fu, subject to a due diligence investigation by Dragon Fu, a valuation report to be issued by a qualified appraisal firm, and the signing of a definitive sales and purchase agreement.
Editor's Note: Qiao Xing Universal's board of directors earlier approved a plan to sell off the company's indoor phone and low-end mobile business. For more information, please see "Qiao Xing Universal to Sell Low-End Mobile Business, Buys Mine," MD, 7/27/09 issue.
Keywords: low-end corporate restructuring divest profit Dragon Fu Investment M&A fixed-line handset wireless Qiao Xing Universal Telephone XING Huizhou Qiao Xing Communication Industry Qiao Xing Communication Holdings
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