AutoChina International Closes Sale of Chinese Consumer Auto Dealership Business for Approximately $68.8 Million
14 Dezember 2009 - 10:05PM
Business Wire
AutoChina International Limited (“AutoChina” or the “Company”)
(NASDAQ: AUTC, AUTCW, AUTCU), a leading one-stop commercial vehicle
sales and leasing company in China offering its customers
affordable lease-to-own options, today announced that it has
completed the previously announced sale of its consumer auto
dealership business.
The consumer auto dealership business was sold to Xinjiang
Guanghui Industry Investment (Group) Co. (“Xinjiang”) for a cash
payment of approximately $68.8 million (RMB470 million). The
Company expects to utilize the net proceeds from the sale to expand
AutoChina’s commercial vehicle sales and financing business, which
is already among the leaders in the industry in China. The Company
expects to report a pre-tax gain of approximately $11.3 million
(approximately RMB77 million) from this transaction in the current
fourth quarter.
Xinjiang was established in 1989, and includes among its
investments the China Grand Automotive Group (“CGA”) joint venture
with TPG Newbridge. CGA operates a network of over 100 auto
dealerships in China.
AutoChina’s Chairman and CEO, Mr. Yong Hui Li, noted, “We are
pleased to have closed this transaction, which will enables us to
devote all of our resources and time toward maximizing the value of
our commercial vehicle sales and financing business. In addition,
we value our strong relationship with Xinjiang, and hope to
potentially work together on other projects in the future.”
About AutoChina International Limited:
AutoChina International Limited is a leading one-stop commercial
auto financing and sales company in China. AutoChina’s operating
subsidiary was founded in 2005 by nationally recognized Chairman
and CEO, Yong Hui Li. The Company’s website is
http://www.autochinaintl.com.
Safe Harbor Statement:
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about the Company. Forward-looking statements are statements that
are not historical facts. Such forward-looking statements, based
upon the current beliefs and expectations of the Company's
management, are subject to risks and uncertainties, which could
cause actual results to differ from the forward-looking statements.
The following factors, among others, could cause actual results to
meaningfully differ from those set forth in the forward-looking
statements:
- Continued compliance with
government regulations;
- Changing legislation or
regulatory environments;
- Requirements or changes
affecting the businesses in which the Company is engaged;
- Industry trends, including
factors affecting supply and demand;
- Labor and personnel
relations;
- Credit risks affecting the
Company's revenue and profitability;
- Changes in the automobile
industry;
- The Company’s ability to
effectively manage its growth, including implementing effective
controls and procedures and attracting and retaining key management
and personnel;
- Changing interpretations of
generally accepted accounting principles;
- Whether the transaction to sell
the automobile dealership business is consummated;
- General economic conditions;
and
- Other relevant risks detailed in
the Company’s filings with the Securities and Exchange
Commission.
The information set forth herein should be read in light of such
risks. The Company does not assume any obligation to update the
information contained in this press release.
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