Qiao Xing (XING) announced that the acquisition of a further 25% equity interest in CEC Telecom Co, Ltd via its 90%-owned subsidiary Huizhou Qiao Xing Communication Industry, Ltd has recently been approved by the Beijing Commercial Bureau.
The new business license for CEC Telecom Co, Ltd (CECT) is expected in late July or early August.
CECT is one of the fastest-growing local mobile phone handset manufacturers in the China market. In February 2003, Qiao Xing Universal's 80%-owned subsidiary Qiao Xing Mobile Communication Co., Ltd acquired a 65% equity interest in CECT from its former shareholders.
In June 2004, Huizhou Qiao Xing Communication Industry, Ltd (HZQXCI) entered into an agreement with China Electronics Corporation ("CEC") to acquire a 25% equity interest in CECT from CEC. The completion of the transaction is subject to all necessary government approvals being obtained and all administrative formalities being accomplished.
The Company said that they have sufficient internal resources to support the completion of the transaction and that once the 25% acquisition is completed, the Qiao Xing Universal Telephone Group's effective share in the net income of CECT will rise from 52.0% to 74.5%.