SHENZHEN, China, Aug. 11 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("China Security" or "CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance technology in the PRC, today announced it has signed a letter of intent to purchase 100% ownership in Shanghai Nanxiao Fire Protection Engineering Equipment Co., Ltd. (“Shanghai Nanxiao”), one of the largest fire protection system installation companies in China for approximately RMB 100 million (approximately US$14.6 million based on an exchange rate of USD 1.00 to RMB 6.84). The payment may be made partially in cash and partially in restricted common stock of CSST over the next three years. The intended acquisition marks CSST’s strategic expansion into the fire safety industry, further leveraging the Company’s established brand, broad distribution network and scalable project management expertise. Completion of the transaction is subject to negotiation of a definitive equity transfer agreement that will be subject to a number of closing conditions, including regulatory approval.
Founded in the mid 1990’s, Shanghai Nanxiao is a professional fire safety solution provider and equipment manufacturer. With its strong R&D and professional management, Shanghai Nanxiao engages primarily in the development, installation, inspection and maintenance of a number of building fire safety auto-alarm and extinguishing systems. It also markets and sells various new fire safety products and offers technical consultation for fire safety projects. Shanghai Nanxiao owns a First Degree Certificate of Fire Safety System Installation and Project Construction enacted by the Ministry of Construction and complies with ISO14001:2400 International Environment Management Standards and GB/T28001-2001 National Occupational Health and Safety Management Standards. Shanghai Nanxiao has 15 well-established branches across China, and, in addition to its core business activities, is an official contractor of the 2010 World Expo Shanghai “Future” Exhibition Hall for various fire safety related projects covering over 40,000 square meters of construction space.
Mr. Guoshen Tu, Chief Executive Officer of China Security, commented, “We are very pleased to announce the contemplated acquisition of Shanghai Nanxiao, which signifies our strategy to expand into the fire safety market and to further strengthen our presence and execution capabilities in Tier 1 cities. Shanghai Nanxiao is one of the leading fire protection system installation companies in China and regularly undertakes key national fire safety projects, such as the World Expo Shanghai. As the Chinese government continues to expand the nation’s fire safety infrastructure, we are positioning ourselves to become a key player in the emerging fire safety industry. Being China’s leading safety solutions provider, we continuously focus on integrated total safety solutions to meet our customers’ needs and provide our premium edge as we strive to create value for our shareholders and build a safe, harmonious environment for our customers.”
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes, installs and services surveillance and safety products and systems as well as develops surveillance and safety related software in China. Its customers are mainly comprised of commercial and government entities and non-profit organizations. China Security has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points throughout China. To learn more about the Company visit http://www.csst.com .
Safe Harbor Statement
This press release may include certain statements, including without limitation statements concerning the proposed transaction and its impact on our prospects, that are not descriptions of historical facts, but are
forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as ‘will,’ ‘believes,’ ‘expects’ or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. The proposed transaction described in this press release may not proceed as described or at all as the parties may not agree on final terms. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (‘SEC’), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system at http://www.sec.gov .
For more information, please contact:
Company Contact:
Terence Yap
Tel: +86-755-8351-5634
Email: ir@csst.com
Investor Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com
Bill Zima
Tel: +1-203-682-8200
Email: bill.zima@icrinc.com
Media Contact:
Patrick Yu
Fleishman-Hillard Hong Kong
Tel: +852-2530-2577
Email: patrick.yu@fleishman.com
