BEIJING, China–SORL Auto Parts, Inc. has added to independent directors and formed a committee to properly assess the offer from a group led by its current CEO to take the company private.
SORL is a leading manufacturer and distributor of automotive brake systems as well as other key safety-related auto parts in China. Last month, Xiaoping Zhang, the Chairman and Chief Executive Officer of the Company, Ms. Shuping Chi and Mr. Xiaofeng Zhang, directors of the Company, and Ruili Group Co., Ltd. submitted a proposal to acquire all of the outstanding shares of the Company not owned by them or their affiliates.
The Company added Mr. Xiao Lin and Mr. Binhua Feng as independent directors to fill newly created vacancies. Then, the Board formed a special committee of independent directors (the “Special Committee”) consisting of Mr. Xiao Lin and Mr. Binghua Feng to review, evaluate and negotiate the proposal and make a recommendation to the board.
The Special Committee is in the process of retaining its independent financial advisor and independent legal counsel to assist it in its review, evaluation and negotiation of the Proposal and any alternative thereto.
The Company cautions its shareholders and others considering trading in its securities that neither the Special Committee nor the Board has set a definitive timetable for the completion of its evaluation of the Proposal or to make any decision with respect to the Company’s response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that the Proposal or any other transaction will be approved or consummated.
About SORL Auto Parts, Inc.
As a global tier one supplier of brake and control systems to the commercial vehicle industry, SORL Auto Parts, Inc. is the market leader for commercial vehicles brake systems, such as trucks and buses in China.