Wescast OK's Chinese buyer's acquisition terms
Canadian supplier Wescast Industries Inc. has agreed to be acquired by Sichuan Bohong Industry Co. after the Chinese firm paid a deposit to assure that the acquisition will occur.
Under the agreement signed on June 1, Bohong will acquire Wescast for $195 million (1.2 billion yuan). To ensure the execution of the deal, the Chinese company has provided Wescast with a 12.7 million yuan deposit.
China Development Bank, a state-owned Chinese bank, helped finance the deal for Bohong, according to Wescast.
Last year, Wescast signed a memorandum of understanding with Bohong which set terms for the acquisition. But Bohong later failed to pay a deposit of 12.7 million yuan in time to secure the deal.
Westcast, of Brantford, Ontario, employs 2,000 workers in 7 factories worldwide. It makes exhaust manifolds, exhaust components, turbocharger housings and other components.
Bohong, a private company established in 1999 in southwest China's Sichuan province, makes steering components, brake parts and engine blocks. Its customers include TRW, Bosch, Visteon and Delphi as well as domestic Chinese suppliers.
China Development Bank, a state-owned Chinese bank, helped finance the deal for Bohong, according to Wescast.
Last year, Wescast signed a memorandum of understanding with Bohong which set terms for the acquisition. But Bohong later failed to pay a deposit of 12.7 million yuan in time to secure the deal.
Westcast, of Brantford, Ontario, employs 2,000 workers in 7 factories worldwide. It makes exhaust manifolds, exhaust components, turbocharger housings and other components.
Bohong, a private company established in 1999 in southwest China's Sichuan province, makes steering components, brake parts and engine blocks. Its customers include TRW, Bosch, Visteon and Delphi as well as domestic Chinese suppliers.
