ZHEJIANG, China, April 26, 2019 (GLOBE NEWSWIRE) — SORL Auto Parts, Inc. (NASDAQ: SORL) (“SORL” or the “Company”), a leading producer and distributor of car brake systems as well as different key safety-associated auto components in China, introduced nowadays that its Board of Directors (the “Board”) has obtained a non-binding initial thought letter, dated April 25, 2019, from Mr. Xiaoping Zhang, its Chairman and Chief Executive Officer (“Chairman Zhang”), Ms. Shuping Chi and Mr. Xiaofeng Zhang, directors of the Company, and Ruili Group Co., Ltd. (collectively, the “Consortium”) to accumulate all the tremendous shares of not unusual stock of the Company no longer already owned using the Consortium for US$4.26 in line with the share of commonplace stock in cash. Ms. Chi is the spouse of Chairman Zhang, and Mr. Xiaofeng Zhang is the brother of Chairman Zhang. The $4.26 in step with the percentage rate of the inspiration represents a thirteen.9% premium over the Company’s ultimate final price on April 24, 2019, a top rate of about 35.64% to its common last charge during the last 30 trading days, and a premium of approximately 36.Ninety-three % to its average remaining charge during the last 60 trading days.
The contributors of the Consortium are presently beneficially personal inside the combination about fifty-eight.Nine% of the issued and brilliant shares of commonplace inventory of the Company on a fully diluted basis. The Consortium has engaged O’Melveny & Myers LLP as their criminal guide and Huatai United Securities Co., Ltd. As their financial guide for the proposed transaction. The Consortium intends to fund the proposed transaction with cash accessible, and the proposed transaction will now not be subject to a financing situation. A copy of the suggestion letter is attached hereto as Exhibit A.
The Board intends to form a unique committee including independent administrators to do not forget the inspiration. The Board expects that the unique committee will retain unbiased advisors, together with unbiased financial and criminal advisors, to help it in this manner. The Company cautions that this concept constitutes simplest a preliminary indication of the Consortium’s interest and does not represent any binding dedication with appreciation to the transaction proposed or any other transaction. No agreement, association, or information between the Company and the Consortium regarding any proposed transaction could be created until definitive documentation has been done and delivered using the Consortium to the Company and all other appropriate parties.
The Board cautions the Company’s shareholders and others thinking about buying and selling the Company’s securities that the Board has just received the suggestion letter and has not had a possibility to cautiously overview and compare the idea or make any decision concerning the Company’s response to the notion. There can be no warranty that any definitive offer may be made by the Consortium, that any definitive settlement will be finished regarding the proposal or any other transaction, or that this or any other transaction can be accredited or consummated. The Company does not adopt any duty to offer any updates regarding this or some other transaction, except as required underneath applicable law.
About SORL Auto Parts, Inc.
As a worldwide tier-one dealer of brake and control systems to the economic vehicle industry, SORL Auto Parts, Inc is the marketplace leader for business vehicle brake structures, including vehicles and buses in China. The Company distributes products both inside China and the world over beneath the SORL trademark. SORL is listed among most of the top a hundred vehicle thing suppliers in China, with a product range that consists of 65 categories with over 2000 specifications in brake systems and others. The Company has four authorized worldwide sales facilities in the UAE, India, the USA, and Europe. In addition, SORL is operating to establish a broader international sales community.
Safe Harbor Statement
This press launch may also consist of certain statements that are not descriptions of historical records but are ahead-looking in the which means of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be recognized using forward-searching terminology together with “expects,” “anticipates,” “beliefs,” “objectives,” “dreams,” “initiatives,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “should” or similar expressions. For instance, while the Company describes the preliminary non-binding thought letter assessment, it is using ahead-looking statements. These forward-searching statements may additionally consist of statements about the Company’s proposed discussions related to its business or increase strategy, which might be subject to change. Such information is based upon expectancies of the Company’s management that had been affordable whilst made but may also prove wrong. All of such assumptions are inherently problem to uncertainties and contingencies beyond the Company’s control and upon assumptions with recognize to future enterprise choices, which can be a problem to trade. Accordingly, the Company does not undertake to replace the forward-looking statements contained in this press release. These dangers and uncertainties may consist of but are not confined to well-known political, economic, and commercial enterprise conditions, which may additionally affect the call for commercial automobiles or passenger cars in China and the other large markets in which the Company’s merchandise is bought, uncertainty concerning such political, economic and business situations, traits in the client.