Dynex Power Announces Update on Strategic Transaction
TORONTO, Canada, May 30th, 2008 Dynex Power Inc. (“Dynex”) today updated the status of the proposed transaction with Zhuzhou CSR Times Electric Co., Ltd. (“CSR Times Eletric”), a leading Chinese manufacturer of mass transit electrical systems, based in Hunan Province, People’s Republic of China (“PRC”) that was initially announced on March 31, 2008.
Pursuant to a non-binding Letter of Intent dated March 28, 2008, CSR Times Electric was granted the option to acquire either 80% or 100% of the outstanding common equity shares of Dynex for cash at a price of Cdn$0.55 per share. While this price is non-binding on CSR Times Electric, CSR Times Electric had agreed to use its reasonable efforts to reaffirm the price within sixty days of March 28, 2008.
Dynex has received a reaffirmation letter dated May 28, 2008 from CSR Times Electric reaffirming its intention to proceed with the proposed transaction by way of a plan of arrangement based on the offered price of Cdn$0.55 per common share of Dynex subject to:
(i) there being no material adverse findings from the due diligence of Dynex which remains ongoing;
(ii) any further agreements regarding the terms or structure of the proposed transaction reached between CSR Times Electric and Dynex prior to the date of execution of the definitive agreements;
(iii) CSR Times Electric acquiring between 70% to 80% of the issued common shares of Dynex;
(iv) execution of the definitive agreements regarding the proposed transactions on terms satisfactory to both parties.
Shareholders are cautioned that despite the receipt of this reaffirmation from CSR Times Electric, there can be no assurances that this transaction will close.
About Zhuzhou CSR Times Electric Co., Ltd
CSR Times Electric is a limited liability company established in Hunan Province, PRC whose shares are listed and traded on the Hong Kong Stock Exchange. It is a leading supplier of on-board electric systems in the PRC rail-transport industry, and its principal business activities include research and development, design, manufacture and sale of a wide range of mass transit electric drive converters and control systems. The company also produces electrical components including semiconductor devices, sensors and other related products.