Hongliopto announced it cancelled the acquisition of Shenzhen Wisdom GPS on Tuesday, according to a Securities Times report.
The company signed a letter of intent to acquire Shenzhen Wisdom GPS on July 18, 2015 for RMB 195 million (US $30.57 million), the transaction will include 18.57 million of Wisdom GPS shares. Hongliopto will be investing an additional RMB 65 million to acquire 5.57 million Wisdom GPS shares. If the acquisition went according to Hongliopto’s proposed plan, it would acquire 36.58% of Wisdom GPS shares.
During this time period, the company strictly followed China’s Securities Regulatory Committee regulations, and commissioned a financial intermediary to inspect Wisdom GPS situation. Hongliopto found Wisdom GPS did not meet its investment expectations, and based on the investment letter of intent, the acquisition would automatically be terminated if no formal acquisition agreement was signed by Aug. 31, 2015.
Managers in Hongliopto decided to terminate the acquisition after thorough evaluations were made.
The termination of the investment will have no impact on the company’s management, nor will it affect the company’s future strategy in automotive network. The company will continue to find suitable partners in automotive network, and gradually build a platform that connects LED businesses, financial and automotive networks to improve the company’s competitiveness and create greater value for its investors.
