As ExcelStor Group, which is partly owned by Shenzhen Kaifa Technology, holds 23% stakes in IOM, Shenzhen Kaifa Technology would indirectly hold 7.67% stakes in Iomega, according to the announcement.
In terms of the agreement signed by the two sides, ExcelStor Group, ExcelStro Holdings, Great Wall Technology will sell their holdings in ExcelStor Technology and ExcelStro Great Wall to IOM for USD 50,000. Iomega will issue new shares to Great Wall Technology through private placement.
With completion of the deal, Great Wall Technology will become the biggest shareholder of IOM. ExcelStor Group and Great Wall Technology will hold 23% and 37% stakes in Iomega respectively.
Iomega Corporation is listed on New York Stock Exchange. So far the company has issued 55.34 million shares. It is a world- leading portal storage equipment maker. It products include Zip and REV-branded disk drives, portable, desktop, and mini network hard disks, network NAS servers, CD-ROMs, and mini USB flashes.
Shenzhen Kaifa Technology says that with completion of the share transfer Shenzhen-based EexelStor Technology will be the wholly-owned subsidiary of Iomega. The deal would make the company pick up the momentum in international competition and sustainable development.
As the upstream product supplier, Shenzhen Kaifa Technology's hard disk magnetic head business will benefit from the deal, which is the main sales source of the company.
What is more, if ExcelStor Group becomes one of the shareholders of Iomega its evaluation rating will be further upgraded, which will add to new incomes to the company.
Great Wall Technology Co., Ltd (0074. HK) is the major subsidiary of China Great Wall Computer Group Co. It is established in Shenzhen on March 20, 1998 with a registered capital of CNY 743 million and was listed on the Stock Exchange of Hong Kong Limited August 5, 1999.
The company holds 60.47%, 55.96% and 51%, 35% interests, respectively, in China Great Wall Computer Shenzhen Co., Ltd., Shenzhen Kaifa Technology Co., Ltd., Shenzhen Kaifa Magnetics Recording Co., Ltd, and Great wall Broadband Network Service Co., Ltd.
The core business of the company includes but not limited to core computer parts, computer manufacture, software and system integration and broadband network and value-added services.
From www.cnstock.com, Page 1, Friday, December 14, 2007 info@SinoCast.com
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