Shanghai Chengbang Auto Accessories PLC
Shanghai Chengbang Auto Accessories PLC: Letter of intent
Shanghai Chengbang Auto Accessories PLC / Key word(s): Letter of Intent Shanghai, China. – November 1st, 2011 Shanghai Chengbang Auto Accessories PLC (SCAA) a public company listed on the Frankfurt Stock Exchange under (Ticker Symbol: SN1) and Royal Master Finance (RMF) a private financing firm operating in South Africa signed a Memorandum of Understanding (MOU) establishing an agreement to purchase 30% of the common stock of Shanghai Chengbang Auto Accessories PLC (SN1). Under the MOU, Royal Master Finance (RMF) will acquire 30 % of the common stock of SN1at an agreed price per share, and at the same time, RMF will help SCAA to expand into the market of South Africa, installing a manufacturing facility to produce automotive parts such as Alternators, Rotors, Starters and Stators. According to the MOU, RMF will also be responsible for the establishment of a SCAA plant in South Africa and carry the cost of installing of the equipment in the plant; however all the opperational costs including salaries will be covered by SCAA Head Office in China. The MOU also includes the assistance of RMF in the area of Public and Investment Relation, and according to the agreement RMF will also be responsible for the dual listing of the SCAA stocks on the JSE. Adv. Sabelo Sibanda – CEO of Royal Master Finance (RMF) said we are thrilled to have this opportunity to acquire 30 % of SN1 and also to become part of a company with such a bright future. The automotive market is in a growing demand and need in South Africa and this is a great opportunity to help our economy by installing, manufacturing and distributing good quality auto parts such as alternators, Rotors, Starters, Stators and so forth. This transaction will help reduce the high rate of unemployment in our country as it will open an opportunity for job creation. Adv. Sibanda said, joining efforts with a good quality company like SCAA is and will be a success story to all, as our aim is to dual list Shanghai Chengbang Auto Accessories Plc on the Johannesburg Stock Exchange with the main objective to create shareholder value for all parties involved Mr. Jiang Zhipeng- CEO of Shanghai Chengbang Auto Accessories PLC (SCAA), said, it is a great honor to us to join forces with RMF and we are looking forward to penetrate the market of South Africa and support the effort of RMF in managing and operating the plant to suffice the need of the south African market and neighboring countries, indeed it is an exciting opportunity for our company to work together with RMF in this transaction. BACKGROUND Royal Master Finance is a Corporate, Funding advisory and Finance Firm that assists small to medium enterprises in capital raising, corporate structuring and corporate governance. Royal Master Finance was established in 2009 to assist clients with both their equity and debt requirements. We assist in Working Capital, Debt Capital, Equity Capital, Confidential Equity Offerings, Special Solutions & Restructuring, Business Plans & Funding Proposals, Capital Structuring, Management Buyouts, Mergers, Acquisitions & Divestitures, Project Structured Finance and Due Diligence.. Shanghai Chengbang Auto Accessories Plc is a public company dedicate to manufacturing and sales of auto parts. The company is located in Shanghai China and has distribution channels in China and in 22 different countries worldwide. Shanghai Chengbang Auto Accessories Plc design, manufactures, and sells its products to OEM and to wholesalers. The company became public and listed on the Frankfurt Stock Exchange on June 11, 2011. CONTACT: THE TEXT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. NO MONEY, SECURITIES, OR OTHER CONSIDERATION IS BEING SOLICITED BY THIS Press Release or WEBSITE AND/OR TEXT. End of Corporate News 01.11.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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