ZAP takes 51% stake in China based electric vehicle maker Jonway Automobile
ZAP (OTCBB:ZAAP) has taken a significant slice of China’s Zhejiang Jonway Automobile, and secured international distribution rights to the company’s electric vehicles, in a cash and equity deal.
The agreement, announced this morning, sees ZAP shell out just over US$29 million in cash for a 51% controlling stake in Jonway Automobile, a subsidiary of the Jonway Group. The agreement also allows ZAP to acquire the remaining 49% in the company using the same valuation until March 2011, and thereafter using a ‘current valuation’. In addition to the 51% equity interest, ZAP has also agreed to issue 31.5 million shares, valued for the transaction at $1 per share, in order to secure international distribution rights to Jonway Automobiles electric vehicles.
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