VANCOUVER, June 28 /CNW/ - Zongshen PEM Power Systems Inc. ("ZPP" or the "Company") (TSX: ZPP) announced today that shareholders of the Company, excluding Zongshen Industrial Group Co., Ltd. ("ZIG") and any of its related parties, joint actors, affiliates or associates, have overwhelmingly approved the acquisition (the "Acquisition") of the two-wheeled gas motorcycle business from Hong Kong VAS International Development Limited, an investment holding company that invests in tandem with, and is related to and controlled by ZPP's strategic partner and largest shareholder, ZIG.
At the Company's Annual and Special Meeting held June 25, 2010 (the "Meeting"), 99.97% of the Company's shareholders present in person or represented at the Meeting, excluding shares held by ZIG and any of its related parties, joint actors, affiliates or associates, approved the resolution authorizing the Acquisition.
The Company believes that the Acquisition represents a unique opportunity to acquire a leading Chinese motorcycle business in the world's largest growth market. In addition, the Company believes that the gas motorcycle business will provide ZPP with a strong manufacturing, technology and distribution platform for its electric motorcycle business. The Acquisition will also further align the interests of ZPP and ZIG.
It is anticipated that the Acquisition will close on or about July 1, 2010.
At the Meeting, shareholders also approved the election of Zongshen Zuo, Yao Li, Joanne Yan, Malcolm Clay and Kim Oishi as directors of the Company and the appointment of PricewaterhouseCoopers LLP as the Company's auditors.
Details of the Acquisition were included in the management proxy circular of ZPP dated May 10, 2010 and the Letter to Shareholders dated June 1, 2010 which are available under the Company's profile on SEDAR at www.sedar.com.
About Zongshen PEM Power Systems Inc.
Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the Toronto Stock Exchange. The Company manufactures electric and gas motorcycles and electric bicycles in China for the Chinese domestic and international markets. Zongshen PEM Power System's largest shareholder is Zongshen Industrial Group, one of China's largest manufacturers and distributors of engines and power equipment.
SOURCE ZONGSHEN PEM POWER SYSTEMS INC.
For further information: For further information: Frank Chen, Zongshen PEM Power Systems Inc., Chief Financial Officer, 1-604-687-7908, firstname.lastname@example.org