The Digital Source For China's Tech Innovation Since 2000

Search
Close

Weida Communications Completes Contractual Arrangements With Operating Partner

August 31, 2004
Telecom & Wireless

Weida Communications, Inc. said it completed a series of contractual arrangements resulting in its acquisition of effective management control and 51% profit-sharing interest in Guangzhou Weida Communications Co., Ltd.

Under the terms of the transaction, Weida Communications acquired effective majority ownership and control of Guangzhou Weida Communications through a 51% profit-sharing interest held by a wholly owned Hong Kong entity and other contractual arrangements. Under the agreements Weida Communications can designate three of Guangzhou Weida's five directors.

As part of the transaction, Weida Communications will be issuing 16.3 million shares to the shareholders of Guangzhou Weida. Weida Communications also is committed to paying Guangzhou Weida shareholders $15 million 12 months from the time of the just-completed transaction or when the companies complete formation of a Sino-foreign equity joint venture. The parties are seeking Peoples Republic of China regulatory approvals for the EJV, in which Weida Communications would hold a 25% ownership interest in addition to its profit-sharing interest. When the EJV takes effect, its profit-sharing interest will be reduced to 26% so as to maintain its effective 51% majority interest.

Weida Communications and Guangzhou Weida have agreed that no cash payments will be made to Guangzhou Weida shareholders until the EJV is approved or for 12 months while the process is under way. Approval and formation of the equity joint venture is not required for Weida Communications to achieve its basic control and financial reporting objectives for the acquisition, which it meets through the 51% profit-sharing and contractual structure.

Tags: acquisition | cash | China | communications | finance | financial | Guangdong | Guangzhou | Hong Kong | IT | joint venture | KONG | management | profit | shares | Three

Other Related News:

China's First Real Name Blog Website Online

January 31, 2007

How the U.S. benefits when China turns its back on Bitcoin WVIK, Quad Cities NPR

February 25, 2022

HONOR entra a la pelea por China, donde Xiaomi no logra escalar

October 30, 2021

CASS Releases First E-commerce Report

February 21, 2006

5 Things You Need To Know About Digital Collectibles In China

August 2, 2022

China is spending $300,000 to get US influencers to share positive social media posts to boost the country’s image ahead of the 2022 Winter Olympics

January 23, 2022

Sony China Fined CNY30000 For Understating Sales Revenue

December 29, 2005

Can Bitcoin Price Fall to Zero? Chinese State-Run Media Warns ChinaPulse.com China News, Data, Media Intelligence and Insights ChinaPulse.com China News, Data, Media Intelligence and Insights

June 26, 2022

Sen. Rubio calls on FTC to investigate Chinese-based social media app TikTok

July 8, 2022
  • Contact Us
  • About Us
  • Corrections and Disclosure
  • Privacy Policy
  • Terms & Conditions
Menu
  • Contact Us
  • About Us
  • Corrections and Disclosure
  • Privacy Policy
  • Terms & Conditions
© 2022 ChinaTechNews.com. A Service of Asia Media Network.
Twitter
Posting....