22nd Sep 2014 08:26
LONDON (Alliance News) - Vmoto Ltd Monday said it has entered into a deal to acquire Nanjing Haiyong Electronic Technology Co Ltd, replacing a previous agreement between the two companies to enter into a joint venture.
Vmoto did not provide financial details of the transaction, but said the acquisition of Nanjing Haiyong, which makes producing controllers for electric vehicle driving systems, would replace the previous agreement between the pair, announced in October 2013, to form a joint venture.
Vmoto said the deal would be earnings accretive in the full year 2015 and said the deal will be 100% funded by equity.
The company has created a new subsidiary which will focus on the development and manufacturing of a complete electric driving system for electric vehicles.
"Haiyong represents an important acquisition for Vmoto and provides the company with several strategic benefits, including access to electric vehicle technologies central to the electric driving system. This in turn enhances Vmoto's intellectual property and value-add, enabling it to become a more integrated manufacturer with a more diverse base of electric vehicle products and markets," said Vmoto Managing Director Charles Chen.
Vmoto shares were untraded on Monday at 2.6 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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