Enhances the Sales of Premium Vehicle Brands
HONG KONG, June 27, 2011 /PRNewswire-Asia/ -- China ZhengTong Auto Services Holdings Limited ("ZhengTong Auto" or the "Company", together with its subsidiaries, the "Group"; HKEx Stock code: 1728), a major 4S dealership group in China, announced today that the Company has entered into acquisition agreement with Ally Unity Limited on 26 June 2011 and has conditionally agreed to acquire 100% equity interest in Acme Joy Group Limited ("Acme Joy") so as to further enhance the sales of premium vehicle brands.
The consideration payable for the sale shares is approximately RMB327.4 million (equivalent to approximately HK$393.8 million), which is subject to adjustment. Upon completion, Acme Joy will become an indirect wholly-owned subsidiary of the Company. Acme Joy is principally engaged in the business of automobile dealership and after-sales services. It owns one 4S dealership with Audi, which is an authorized dealer of Audi in Qingdao.
Executive Director and Chief Executive Officer of ZhengTong Auto, Mr. WANG Kunpeng said,"The sales of premium vehicle brands have always beenthe major development of ZhengTong Auto. The Acquisition of Acme Joy will help the Company in expanding the network for dealing in premium vehicle brands, and contribute to the dealership share of the Company in Audi. Shandong is a market that we first get into. We believe that the market potential of luxury cars in such region is considerable, which is favorable to the development of the dealership network in the coastal region. Upon the completion of the acquisition, the number of 4S dealerships operated by the Company will reach 26. Looking into the future, we will continue to strengthen the vehicle dealership business, expand the existing dealership network and optimize the portfolio of premium brands. Together with high quality and comprehensive after-sales services, we strive to deliver satisfactory returns for the investors."
About China ZhengTong Auto Services Holdings Limited
ZhengTong Auto is a major 4S dealership group in China focused on premium brands such as BMW, MINI and Audi. In addition to the premium brand dealership, the Company also operates dealership stores for ultra premium brand such as Porsche, and middle market brands such as Nissan and Honda. The Company operates 25 dealership shops covering 15 cities in China, provides them with a strong presence in both the large, established automobile markets of the affluent regions of China as well as the rapidly developing regions. Each of the dealership stores is a 4S dealership store that integrates four principal automobile-related businesses: sales, spare parts, service and survey, and offers a broad range of sales and services.
For further information, please contact:
Porda Havas International Finance Communications Group
| Ms. Kelly Fung | +852-3150-6763 | kelly.fung@pordahavas.com |
| Ms. Carmen Cheung | +852-3150-6713 | carmen.cheung@pordahavas.com |
