HARBIN, China, Sept. 6, 2011 /PRNewswire/ -- Mr. Tianfu Yang, Chairman and Chief Executive
Officer of Harbin Electric, Inc. ("Harbin Electric" or the
"Company"; NASDAQ: HRBN), and Abax Global Capital ("Abax") today
reaffirmed their commitment to acquire all of the outstanding
shares of Common Stock of Harbin Electric not currently owned by
Mr. Yang, Abax and their respective affiliates for $24.00 per share in cash in a "going private"
transaction, as per the merger agreement entered into on
June 20, 2011.
China Development Bank Corporation also today affirmed its
commitment to providing financing for the going private
transaction.
Mr. Tianfu Yang said, "I remain
fully committed to moving forward with this going private
transaction, which we expect to complete in the fourth quarter.
With an all-cash offer and financing fully in place, this
transaction provides shareholders with immediate certain value, at
a significant premium to Harbin's
current and historical stock price. I am confident that this
transaction is the best way to return value to Harbin shareholders."
"We are pleased to partner with Tianfu
Yang in this transaction," said Donald Yang, Managing Partner and Chief
Investment Officer of Abax Global Capital. "Abax has
expressed its strong confidence by committing to provide both
equity and mezzanine financing, and we will continue providing our
firm support for this transaction through its completion."
Tech Full Electric Company Limited ("Tech Full Electric"), a
Cayman Islands exempted company
with limited liability, wholly owned indirectly by Mr. Tianfu Yang, and its affiliates have delivered
to Harbin Electric a fully-executed facility agreement between
China Development Bank and Tech Full Electric providing for
$400 million of debt financing and a
fully-executed note purchase agreement between Abax Emerald Ltd., a
wholly owned subsidiary of the Abax Global Opportunities Fund,
which is managed by Abax Global Capital, and Tianfu Investments
Limited ("Tianfu Investments"), a Cayman
Islands company directly owning 100% of the equity interest
in Tech Full Electric, providing for $25
million of mezzanine financing. Abax has also
delivered to Tianfu Investments an executed $38.8 million equity commitment letter and Tech
Full Electric has delivered a fully-executed contribution agreement
to the Company whereby members of the purchasing group will
contribute 12,695,384 shares of the Company's common stock to Tech
Full Electric (the equivalent of an investment of approximately
$304.7 million based on the per share
merger consideration of $24.00 per
share).
The going private transaction is subject to customary closing
conditions, including the approval of the Company's shareholders
(including the affirmative approval of the holders of a majority in
combined voting power of the outstanding Shares not owned by the
purchasing group) and is expected to close in the fourth quarter of
2011.
Goldman Sachs (Asia) LLC is
serving as financial advisor and Skadden, Arps, Slate, Meagher
& Flom LLP is serving as legal advisor to Mr. Tianfu Yang. Davis Polk & Wardwell is
serving as legal advisor to Abax.
ABOUT TECH FULL ELECTRIC COMPANY
Tech Full Electric Company Limited is a Cayman Islands exempted company with limited
liability, wholly owned indirectly by Mr. Tianfu Yang, formed by Mr. Yang for use in
connection with the proposed acquisition and going private
transaction.
ABOUT ABAX GLOBAL CAPITAL
Abax Global Capital is a leading Hong
Kong-based asset manager focused on Asian private and public
investments, with an emphasis on Greater
China. Abax Global Capital's objective is to invest in
and create value for small-to-mid-sized Asian enterprises, thereby
generating returns for all stakeholders.
CONTACT
Abax Global Capital
+852 3602 1800 (Hong Kong)
info@abaxcap.com
SOURCE Abax Global Capital