Paris, November 28 (ots/PRNewswire) - LIONAX announces today that
it signed an Acquisition Term Sheet with Guanhua Cyber Solutions Co.,
Ltd. (GCS) to acquire 51% of GCS's total share holding. GCS is the
dominant solution designer and provider of Passenger Information
System for Public Transportation System including Metro, Hi-Speed
Railway Stations, Light Rail, Bus Station, etc., with 80% market
share in China. GCS's 2007 revenue is expected to be EUR4.5 million
and net profit EUR2 million.
Public transportation is a high growth industry in China. In
addition to metropolitans in Beijing, Shanghai and Guangzhou, dozens
more Chinese cities plan to build new public transportation systems.
In 2005, there were more than 100 cities in China with a population
over 1 million. The number is increasing rapidly as China moves
quickly in its urbanization process. At the same time, most cities'
public transportation systems are planned to be rebuilt or upgraded.
GCS revenue and net profit both grew 5 fold in the past three years
and expect to grow another 3 to 4 fold in the next three years.
Public transportation is an important area of application for
LIONAX's TPMS product and MEMS sensors. James Yang, LIONAX Chairman
and CEO says: "The acquisition of GCS is a key strategic move by
LIONAX to enter new TPMS market segment, as well as prepare for our
promising MEMS sensor business. We will be able to leverage GCS's
strong network and reputation in the public transportation industry.
I am very confident that this acquisition will bring excellent return
for LIONAX investors." Tao Wu, GCS CEO comments: "We are very proud
to join LIONAX, the first Chinese company listed on Euronext. GCS is
in a fast growing industry and believes that the international
management team of LIONAX will add tremendous value to our
development. It is also exciting to have exposure to investors from
The term sheet indicates the purchase price as EUR7,659,000 Euros,
with final adjustment for audited 2007 financial results. LIONAX will
have rights to appoint 3 members in the 5 person GCS board.
LIONAX will be meeting institutional investors in Europe in
December 2007 and January 2008 to finance this deal.
The Company, listed on the Paris stock exchange, designs and
develops innovative Tire Pressure Monitoring System (TPMS) and
digital pressure sensor for automotive industry. LIONAX's products
help its customers to enhance safety, save money and meet regulatory
requirements affordably. LIONAX makes this possible through
technology innovation, manufacturing excellence, research leadership
and best-in-class team of scientists, engineers and management based
in China and the USA.
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