Last week, BVI-registered Asia Automotive Acquisition Corporation (AAAC) announced that its shareholders approved the merger with Hunan Tongxin Enterprise Co., Ltd. The BVI blank check company signed Equity Acquisition Agreement with the Chinese Tongxin Enterprise Co., Ltd. in July, 2007. Pursuant to this agreement, both companies are to merge into a new BVI-domiciled entity, and its name is to be changed to Tongxin International, Ltd. (TXI).
The approval of the shareholders of the BVI company was received at a meeting that took place at AAAC's corporate headquarters; approximately 85% of the shareholders voted for Proposal 1, and about 86% voted for Proposal 2. As the result of the transaction, each share of AAAC will be automatically converted into one share of TXI, and each outstanding warrant of the BVI company will be assumed by TXI with the same terms.
At the same time as the merger, BVI-based TXI will acquire 100% of the issued and outstanding common stock of Hunan Tongxin. The company has applied for listing on the NASDAQ Stock Market under the proposed symbols, TXIC, and TXICW, TXICU.
Hunan Tongxin CEO Mr. Duanxiang Zhang stated in his comments that, as a result of the merger and anticipated NASDAQ listing, the company “will be a much stronger participant in the Chinese automotive market.” Also, in his words, the merger will help the company to expand on the international automotive markets, thus enhancing the long term value of TXI for its shareholders.
