HONG
KONG, Dec. 11, 2023 /PRNewswire/ -- Highway
Holdings Limited (Nasdaq: HIHO, "the Company" or "Highway
Holdings") today announced it has signed a non-binding letter of
intent to acquire a majority stake in Synova Metall- und
Kunststofftechnik GmbH ("Synova"). Synova has been a comprehensive
original equipment manufacturer ("OEM") for the production of
electrotechnical and electromechanical components based in
Germany for over 60 years.
Synova's core competencies lie in plastic injection molding
technology and metal technology. The customer base includes
well-known companies in the automotive and electrical industries as
well as manufacturers of optics and supply technology.
The companies entered strategic discussions approximately one
year ago. With negotiations around terms and conditions
substantially completed, both Highway Holdings and Synova have
mutually agreed to a non-binding letter of intent ("LOI"). Under
the LOI, Highway Holdings will acquire a 51% interest in
Synova. Highway Holdings will also acquire a right, exercisable
under certain circumstances, to acquire the remaining 49% interest
in Synova. The purchase price will be paid partly in cash, and
partly in shares of Highway Holdings common shares.
Highway Holdings is currently conducting due diligence, which is
expected to be finished over the coming weeks. The companies are
targeting to complete the transaction and combine businesses in the
first quarter of 2024. The consummation of the transaction is
subject to the completion of Highway Holdings' due diligence
review, negotiation and execution of a mutually agreeable purchase
agreement and other customary conditions.
Synova serves as an all-encompassing OEM manufacturer, sharing a
comparable technological proficiency and a parallel business
approach with Highway Holdings.
Roland Kohl, chairman, president
and chief executive officer of Highway Holdings, noted, "We are
excited to announce our letter of intent to acquire a majority of
Synova. This follows an extensive 3 year-long search for a partner
that best meets our strategic criteria. Synova rose to the top as
the most suitable target."
"Sharing the extensive synergies will make both companies highly
attractive to our combined customer base while allowing increased
cost savings for a more profitable operation."
About Highway Holdings Limited
Highway Holdings is an international manufacturer of a wide
variety of quality parts and products for blue chip equipment
manufacturers based primarily in Germany. Highway Holdings'
administrative offices are located in Hong Kong and
its manufacturing facilities are located in Yangon,
Myanmar, and Shenzhen, China. For more information visit
website www.highwayholdings.com.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements which involve risks and uncertainties, including but not
limited to economic, competitive, governmental, political and
technological factors affecting the company's revenues, operations,
markets, products and prices, the company's ability to complete the
proposed acquisition of Synova (the "Acquisition"), whether or not
the company satisfactorily completes its due diligence of Synova,
whether or not the company and Synova reach a mutually agreeable
definitive agreement relating to the Acquisition, whether or not
the board of directors of the company approve the Acquisition,
whether or not any required approvals from third parties are able
to be obtained by the company or Synova relating to the
Acquisition, and other factors discussed in the company's various
filings with the Securities and Exchange Commission, including
without limitation, the company's annual reports on Form
20-F.
View original
content:https://www.prnewswire.com/news-releases/highway-holdings-signs-non-binding-letter-of-intent-to-acquire-majority-of-synova-metall--und-kunstofftechnik-gmbh-302011741.html
SOURCE Highway Holdings Limited