SHENYANG, China, Jan. 25 /PRNewswire-Asia-FirstCall/ -- A-Power Energy
Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power" or "the Company"), a
leading provider of distributed power generation ("DG") systems in China and a
fast-growing manufacturer of wind turbines, today announced it has received
the Approval Certificate of Foreign Investment from the National Development &
Reform Commission ("NDRC") and Ministry of Commerce in China to complete the
acquisition of EVATECH Co., Ltd. ("EVATECH") of Kyoto, Japan, today.
On September 16, 2009, the Company signed a definitive contract to acquire
100% of EVATECH, a 22-year-old designer and manufacturer of industrial
equipment for LCDs (liquid crystal displays), PDPs (plasma display panels) and,
more recently, amorphous-silicon (a-Si) photovoltaic (PV) panels. The total
consideration is US$49.9 million in cash. EVATECH is currently undergoing a
rehabilitation process in the courts of Japan related to its corporate and
debt restructuring. A-Power is to fund 100% of the transaction, 45% of which
is expected to be reimbursed from foreign-investment grants from various
levels of the local government in China. The transaction was expected to be
funded by the Company and close prior to December 31, 2009; however, the
Company applied to the courts in Japan for an extension of the funding date to
January 25, 2010, which was granted.
About A-Power
A-Power Energy Generation Systems Ltd. ("A-Power"), through its
China-based operating subsidiaries, is the largest provider of distributed
power generation systems in China, focusing on energy-efficient and
environmentally friendly projects of 25MW to 400MW. In 2008, A-Power entered
the wind energy market and has built China's largest wind turbine
manufacturing facility, located in Shenyang, Liaoning Province, with a total
annual production capacity of 1,125MW. In March 2009, A-Power entered into an
agreement to establish a Joint Venture partnership with GE Drivetrain
Technologies to produce wind turbine gearboxes in Shenyang. In addition to the
establishment of strategic relationships with world's leading wind energy
design and engineering companies, A-Power has formed joint research programs
with Tsinghua University and the China Academy of Sciences to develop and
commercialize other renewable energy technologies. For more information,
please visit http://www.apowerenergy.com.
Safe Harbor Statement
This press release may contain forward-looking statements. Any such
statement is made within the 'safe harbor' provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," and other similar
statements. Statements that are not historical facts, including statements
relating to anticipated future earnings, margins, and other operating results,
future growth, construction plans and anticipated capacities, production
schedules and entry into expanded markets are forward-looking statements. Such
forward-looking statements, based upon the current beliefs and expectations of
our management, are subject to risks and uncertainties, which could cause
actual results to differ materially from the forward-looking statements,
including but not limited to, the risk that: we may not be able to complete
the acquisition with our acquisition target; our acquisition target is
undergoing restructuring in local courts, which may interfere with our ability
to close the acquisition of the target company; our acquisition target's
restructuring process in local courts relates to financial difficulties it
experienced in the operation of its business, and it may continue to
experience financial difficulties after we acquire it; we may not be able to
obtain all of, or any of, the government subsidies related to the acquisition
of the target company; our acquisition consideration is in the form of cash
payment, which is a significant amount of our total cash balance available as
of September 30, 2009, and this may affect our liquidity, and may result in
our inability to provide working capital for our ongoing operations and
expansion; our technicians may have difficulty adapting to new technology;
systems that we develop and install may contain design or manufacturing
defects, which could result in reduced demand for our services and customer
claims and uninsured liabilities; we expect to rely increasingly on our
proprietary products and systems and on technology developed by our licensors,
and if we or our licensors become involved in an intellectual property dispute,
we may be forced to spend a significant amount of time and financial resources
to resolve such intellectual property dispute, diverting time and resources
away from our business and operations as well as other relevant risks detailed
in our filings with the Securities and Exchange Commission, including those
set forth in our annual report filed on Form 20-F/A for the fiscal year ended
December 31, 2008. The information set forth herein should be read in light of
such risks. We assume no obligation to update the information contained in
this press release, except as required under applicable law.
For more information, please contact:
John S. Lin
Chief Operating Officer
A-Power Energy Generation Systems
Email: john@apowerenergy.com
Dixon Chen
Investor Relations
Grayling
Tel: +1-646-284-9403
Email: dixon.chen@us.grayling.com
SOURCE A-Power Energy Generation Systems, Ltd.