International Building Technologies Group, Inc. has announced that the Chinese Government has granted approval for the company to acquire 88% of China based Wuhan Wufeng Machinery Manufacturing Company.
The Wuhan Machinery Company has a registered capital of CNY26.420 million and International Building Technologies Group will pay a fixed acquisition price of CNY11 million.
On April 17, 2008, INBG signed a definitive agreement to purchase the Wuhan Machinery Company, which is located in Wuhan, Hubei Province. Since then INBG has been waiting for approval from the Chinese government and has been preparing for the audit of the Wuhan Machinery Company as scheduled in the definitive agreement.
Ken Yeung, CEO of INBG, said,"We are very excited by the Chinese Government's approval. Today's news brings us significantly closer to completing the acquisition of the Wuhan Machinery Company. We have been working diligently over the past few months to prepare for the audit and will start the process shortly. The acquisition will be finalized upon completion of the audit in acceptance with SEC regulations. After which we can then retool the existing machinery and equipment so that they will be able to manufacture the panel machinery that INBG will utilize in its panel production factory projects, while the current revenue of the Wuhan Machinery Company can bring in a reasonable return for INBG."
INBG has also been working with local investors to set up a multi-million dollar panel production factory in earthquake devastated Sichuan Province to facilitate the rebuilding process. The plan to build a factory in this region has been discussed with the Sichuan Construction Bureau and has been met with great enthusiasm.
"The Sichuan Construction Bureau has reviewed our products and plans for a factory and is eager for us to proceed. We have been working with several investors on this project and it is very promising. We are very optimistic and will keep shareholders and investors informed as new information becomes available," added Yeung.