[7 Aug 2011 – Hong Kong] China ZhengTong Auto Services Holdings Limited (“ZhengTong Auto” or the “Company”, together with its subsidiaries, the “Group” Stock code: 1728), a major 4S dealership group in China, announced today that the Company has entered into a framework agreement with Baotou City Hengtai Enterprise Investment Co Ltd. (“BTHT”) in relation to a potential acquisition, so as to further enhance the dealership of premium vehicle brands.

 

Pursuant to the agreement, it is proposed that the Company will acquire the entire equity interest in BTHT (“Target Company”) if the Potential Acquisition is materialized. The Consideration will be determined based on the value of the assets held by the Target Company and subject to further agreement between both parties. The Target Group is an automobile dealership group, with principal business of premium vehicle brands dealership and 12 automobile dealership outlets in Inner Mongolia.

 

Executive Director and Chief Executive Officer of ZhengTong Auto, Mr. WANG Kunpeng said, “The Group is always committed to enhance the sales of premium vehicle brands, and potential acquisition is one of our strategic investments. Apart from consolidating our existing business networks, it is an important strategy of the Group to expand to high potential growth regions by means of acquisition and establishing new stores. In 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.”