Wanxiang closes in on takeover of A123
Source: Agencies |
August 10, 2012, Friday
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Print Edition
Print Edition
CHINA'S largest automotive parts supplier is poised to take control of US battery maker A123 Systems, which received a US$249 million green-technology grant from the Obama administration in 2009.
Wanxiang Group Corp plans to invest up to US$450 million in A123 Systems, taking an 80 percent stake in the US company, A123 said on Wednesday.
A123 also reported a second-quarter loss of US$82.9 million, or 56 US cents per share, compared with a loss of US$55.4 million, or 44 US cents per share, a year earlier.
The Wanxiang investment will include a bridge loan and the purchase of A123 senior secured convertible notes and warrants.
The companies have signed a non-binding memorandum of understanding and expect to conclude an agreement "in the near term," A123 said.
A123 warned last month that it had cash to fund its operations for only the next four to five months.
A123 received more than US$200 million from venture investors before raising US$378 million in a 2009 initial public offering. That same year, it was awarded a grant under the Obama administration's US$2.4 billion Electric Drive Battery and Component Manufacturing Initiative.
Wanxiang, one of the largest non-government-owned companies in China, with annual revenue of more than US$13 billion, has an electric vehicles subsidiary in Hangzhou and a US subsidiary based outside Chicago.
Wanxiang Group Corp plans to invest up to US$450 million in A123 Systems, taking an 80 percent stake in the US company, A123 said on Wednesday.
A123 also reported a second-quarter loss of US$82.9 million, or 56 US cents per share, compared with a loss of US$55.4 million, or 44 US cents per share, a year earlier.
The Wanxiang investment will include a bridge loan and the purchase of A123 senior secured convertible notes and warrants.
The companies have signed a non-binding memorandum of understanding and expect to conclude an agreement "in the near term," A123 said.
A123 warned last month that it had cash to fund its operations for only the next four to five months.
A123 received more than US$200 million from venture investors before raising US$378 million in a 2009 initial public offering. That same year, it was awarded a grant under the Obama administration's US$2.4 billion Electric Drive Battery and Component Manufacturing Initiative.
Wanxiang, one of the largest non-government-owned companies in China, with annual revenue of more than US$13 billion, has an electric vehicles subsidiary in Hangzhou and a US subsidiary based outside Chicago.
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