BRANTFORD, ONTARIO--(Marketwire - Nov. 28, 2012) - Wescast Industries Inc. (TSX:WCS.A) ("Wescast") today announced that, in connection with its previously-announced acquisition by Sichuan Bohong Industry Co., Ltd. ("Bohong") of China, Bohong has advised Wescast that China Development Bank Corporation ("CDB") has formally approved Bohong's loan application. As disclosed in Wescast's June 1, 2012 press release, Bohong requires debt financing from CDB in order to complete the acquisition. Bohong has advised Wescast that it and CDB will commence the preparation of formal definitive loan documentation shortly. In addition, as disclosed in Wescast's September 14, 2012 press release, Bohong received the approval of the National Development and Reform Commission required for the acquisition.
Wescast and Bohong are in discussions regarding proposed timing of the closing of the acquisition and satisfaction of the closing conditions, including the financing condition in Bohong's favour.
Wescast Industries Inc. is a global automotive parts supplier that designs, engineers, casts, machines and assembles high quality engineered exhaust system components, including exhaust manifolds, turbocharger housings and integrated turbomanifolds, as well as various other components for the car and light truck markets. The Company supplies to a diversified group of global original equipment manufacturers ("OEMs") and Tier 1 customers in North America, Europe, Asia, Africa, South America and Australia. The Company employs approximately 2,200 people in its regionally-based operations and sales and design centres in Canada, the United States, Hungary, China, Germany, Japan, the United Kingdom and France.
Learn more at www.wescast.com.
Forward Looking Statements
The contents of this news release contain statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements based on certain assumptions. Forward-looking statements are provided for the purpose of providing information about Wescast's current expectations and plans relating to the proposed acquisition. Persons reading this news release are cautioned that such information may not be appropriate for other purposes. Such forward-looking statements include the statements regarding the receipt of the definitive commitment letter and the closing of the transaction. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking statements.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward looking statements, including the ability of Bohong to obtain the necessary financing, CDB providing the financing and Bohong obtaining other necessary People's Republic of China approvals.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties principally relate to the risks associated with the proposed acquisition include, but are not limited to: the failure of Bohong to negotiate and enter into definitive documents regarding the debt financing, the possibility that Bohong will be unable to satisfy the conditions precedent to CDB providing the necessary financing, Bohong's lack of sufficient resources to complete the proposed acquisition in the absence of such financing, Wescast's lack of recourse against CDB, or any other lender to Bohong, should such lender fail to provide the required financing assuming Bohong is able to secure financing commitments, Bohong not being able to provide the necessary equity financing, the possibility that any conditions to closing of the proposed acquisition under the arrangement agreement, including regulatory (including any approvals required in the People's Republic of China), shareholder and/or court approvals, may not be satisfied or waived, and Bohong's assets and management being located outside of Canada limiting the practical ability of Wescast to enforce its legal rights under the Agreement, including any judgement obtained in a Canadian court, against Bohong.
Wescast does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.
Wescast Industries Inc.
Edward G. Frackowiak
Chairman and CEO