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ZAP Grabs Majority Stake in Jonway Auto
In brief: In a bold move to enter the Chinese market, ZAP has acquired a majority stake in Jonway Auto, giving the electric car maker a foot in the door to auto manufacturing in China.
The purchase allows ZAP to capitalize on the growing EV market in China. ZAP will acquire 51% of Jonway for $29.03 million USD cash.
Jonway is a profitable company and will be debt-free upon ZAP's acquisition of it with $40 million in sales for 2009 and half that ($20M) in the first quarter of 2010. The agreement also gives ZAP the ability to purchase the remaining 49% of Jonway at the same price per share if done before March 30, 2011.
ZAP, who has limited production capacity in the U.S., will see a huge increase in capacity thanks to this deal.
And so ...
This could be the jump start that takes the 15-year old EV manufacturer to the mainstream. At least in Asia.
Photo credits: ZAP
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