China’s Qiao Xing terminates deal to acquire 40 percent stake in cell phone retailer Eversun
By APThursday, March 25, 2010
Qiao Xing cancels deal to acquire stake in Eversun
BEIJING — Qiao Xing Mobile Communication Co. Ltd. said Thursday that it has terminated the proposed purchase of a 40 percent stake in cell phone retailer Beijing Eversun Technology Co. Ltd.
The Chinese cell phone maker said that it couldn’t reach an agreement over certain commercial terms with Eversun, and as such the purchase wouldn’t be in its shareholders’ interest. Qiao Xing said it will continue to work with Eversun in business ventures.
The deal’s cancellation will not result in any payments to either company.
The 475 million yuan ($69.5 million) cash-and-stock deal was announced on Dec. 14. Qiao Xing was to have paid an additional 150 million yuan ($22 million) if Eversun went public within three years of the deal’s closing.
Shares of Qiao Xing fell 5 cents to $2.28 in afternoon trading.
