Harbin Electric Agrees upon Proposal by CEO and Abax Global Capital

Harbin Electric, Inc., an electric motor producer in China, announced on Jun. 20 that the company has approved the privatization acquisition scheme jointly proposed by Yang Tianfu, CEO and Chairman of the company, and Abax Global Capital.. The acquisition is planned to be completed in Q4’11 at the price of US$24 per share.

According to the announcement, the acquirers, aside from Yang Tianfu, were teamed up with parts of staff from Harbin Electric and Abax Global Capital, with 40.6% share holding in Harbin Electric at present. Yang Tianfu will buy all of tradable shares of the company in cooperation with Abax Global Capital and the trading volume involved is expected to reach US$750M, if calculated at the price of US$24 per share and the total number of tradable shares by the end of May 9.