SOURCE: China Enterprises Limited

November 28, 2011 07:37 ET

China Enterprises Limited Announces Closing of the Sale of Certain Assets to CZ Tire Holdings Limited

HONG KONG--(Marketwire - Nov 28, 2011) - China Enterprises Limited ("China Enterprises" or the "Company") (PINKSHEETS: CSHEF) today announced that it closed the previously announced sale of all of the Company's ownership interests in Hangzhou Zhongce Rubber Company Limited ("Hangzhou") to CZ Tire Holdings Limited ("CZ") for a purchase price of RMB600,000,000 or approximately US$94.41 million, based on the RMB:USD exchange rate reported on November 25, 2011. At closing, approximately US$6.29 million of the proceeds otherwise payable to the Company will be instead deposited into a tax service account for payment of taxes related to the transaction.

As previously reported, the transaction was effected through the purchase by CZ of all of the entire issued share capital of China Tire Enterprises Limited, a wholly owned subsidiary of the Company. China Tire Enterprises Limited's sole asset is the 26% interest in the registered capital of Hangzhou. Hangzhou is incorporated in the People's Republic of China and its principal subsidiaries are mainly engaged in the manufacture and sale of rubber tires, tire rubber, carbon powder, and other materials related to the manufacture of rubber tires.

CZ is a company incorporated under the BVI laws and focuses on investments and opportunities in the tire industry in the greater China region.

Following the sale of its ownership interest in Hangzhou, the Company's assets now primarily consist of the cash that it received in connection with the sale described above and certain investments in financial assets. The board of directors and management of the Company are actively considering all alternatives available for the use of the cash received in connection with the above described transaction.

About China Enterprises and Forward Looking Statements

Based in Hong Kong, China Enterprises Limited is a Bermuda corporation that historically has invested in China-based companies engaged in the sales and manufacturing industry together with financial assets. This press release contains forward-looking statements that involve risks, uncertainties, and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction and the consideration received in the transaction; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties, and assumptions, if at all and that the Company may not be able to identify suitable opportunities for the investment of the proceeds from the contemplated transaction. Additional risks are described in the Company's SEC reports. The Company assumes no obligation and does not intend to update these forward-looking statements.

Contact Information

  • Patricia Baronowski-Schneider
    Tel: 631-756-2486