Listing: TSX Venture Exchange
Symbol: DNX
Dynex Power Announces Update on Strategic Transaction
Zhuzhou
CSR Times Electric Co., Ltd. Reaffirms Offer Price
TORONTO, Canada, May 30th, 2008 Dynex Power Inc. (“Dynex”) today
updated the status of the proposed transaction with Zhuzhou CSR Times
Electric Co., Ltd. (“CSR Times Eletric”), a leading Chinese manufacturer
of mass transit electrical systems, based in Hunan Province, People’s
Republic of China (“PRC”) that was initially announced on March 31, 2008.
Pursuant
to a non-binding Letter of Intent dated March 28, 2008, CSR Times
Electric was granted the option to acquire either 80% or 100% of the
outstanding common equity shares of Dynex for cash at a price of
Cdn$0.55 per share. While this price is non-binding on CSR Times
Electric, CSR Times Electric had agreed to use its reasonable efforts to
reaffirm the price within sixty days of March 28, 2008.
Dynex has
received a reaffirmation letter dated May 28, 2008 from CSR Times
Electric reaffirming its intention to proceed with the proposed
transaction by way of a plan of arrangement based on the offered price
of Cdn$0.55 per common share of Dynex subject to:
(i) there being
no material adverse findings from the due diligence of Dynex which
remains ongoing;
(ii) any further agreements regarding the terms
or structure of the proposed transaction reached between CSR Times
Electric and Dynex prior to the date of execution of the definitive
agreements;
(iii) CSR Times Electric acquiring between 70% to 80%
of the issued common shares of Dynex;
and
(iv) execution
of the definitive agreements regarding the proposed transactions on
terms satisfactory to both parties.
Shareholders are cautioned
that despite the receipt of this reaffirmation from CSR Times Electric,
there can be no assurances that this transaction will close.
About
Zhuzhou CSR Times Electric Co., Ltd
CSR Times Electric is a
limited liability company established in Hunan Province, PRC whose
shares are listed and traded on the Hong Kong Stock Exchange. It is a
leading supplier of on-board electric systems in the PRC rail-transport
industry, and its principal business activities include research and
development, design, manufacture and sale of a wide range of mass
transit electric drive converters and control systems. The company also
produces electrical components including semiconductor devices, sensors
and other related products.
About Dynex
Dynex is
one of the world’s leading suppliers of specialist, high power
semiconductor products. Dynex Semiconductor Ltd is its only operating
business and is based in Lincoln, England in a facility housing the
fully integrated silicon wafer fabrication, assembly and test, sales,
design and development operations. Dynex designs and manufactures high
power bipolar discrete semiconductors, power modules, including
insulated-gate bipolar transistors (IGBTs), and high power electronic
assemblies. Dynex products are used world wide in electric power
transmission and distribution, renewable and distributed power, heavy
industries, factory automation, marine and railway propulsion and
on-board systems and aircraft power electronic systems. The company
continues to produce and sell certain high reliability integrated
circuits (ICs) for use in specialist applications led by its proven
radiation hard Silicon-on-Sapphire products for space satellite
applications.
Forward Looking Statements
This news
release contains forward-looking information. These statements relate to
future events or future performance and reflect management's current
expectations and assumptions. A number of factors could cause actual
events, performance or results to differ materially from the events,
performance and results discussed in the forward-looking statements.
There are a number of factors beyond the control of Dynex that could
result in the termination of the proposed transaction or negotiations
between Dynex and Times Electric could result in transaction terms that
differ significantly from those described above.
Press
announcements and other information about Dynex are available on the
World Wide Web at http://www.dynexsemi.com.
The TSX Venture
Exchange has neither approved nor disapproved of the information in this
press release.
For more information:
Dr. Paul Taylor
President
and Chief Executive Officer
or
Bob Lockwood
Finance
Director and Chief Financial Officer
Dynex Power Inc.
Tel: UK
+44 1522 500 500
Email: investorrelations@dynexsemi.com
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