SHENZHEN, China , April 28 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (NYSE: CSR)("CSST" or "China Security"), a leading provider of digital surveillance technology in the PRC, today announced that China Safetech Holdings Limited ("Safetech"), a British Virgin Islands corporation and a wholly-owned subsidiary of CSST, has entered into an equity transfer agreement to purchase 100% ownership of Sharp Eagle (HK) Limited ("Sharp Eagle"). Sharp Eagle is a holding company that owns all the outstanding equity of Beijing Aurine Divine Land Technology Co., Ltd. ("Guanling").
CSST originally announced a letter of intent to establish an exclusive partnership agreement with Beijing Aurine Yingke Intelligent System Integration Co., Ltd. ("Yingke") and Guanling on June 28, 2007 (collectively "Beijing Guanling Co., Ltd."). Yingke is a system integrator operating from Beijing that has a strong customer focus in the banking and hotel industries, whereas Guanling is the appointed sales agent of Panasonic, Axis Communications and Samsung in China , for closed-circuit surveillance systems, public broadcasting equipments and plasma TV's. It was subsequently after the signing of the letter of intent that CSST decided to acquire Guanling and then to sign an exclusive cooperation agreement with Yingke. After acquiring Guanling, CSST expects to enter into an exclusive cooperation agreement with Yingke in the next few months. The terms of the exclusive cooperation agreement have yet to be finalized.
Under the Equity Transfer Agreement announced today, the Company will pay
a total consideration of
Mr. Guo Shen Tu , Chief Executive Officer of China Security commented, "We are thrilled to add Guanling to our growing portfolio of acquired businesses. As a leading security equipment distributor, Guanling has a strong presence in the Northern part of China as well as a compelling portfolio of leading international security equipment providers. We still intend to finalize our exclusive partnership with Guanling's system integration business, Yingke and believe our acquisition of their distribution arm will result in a long-term relationship that will be highly beneficial to both companies in the future."
The monetary exchange rate used for each transaction is
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout the PRC. To learn more about the Company visit http://www.csst.com .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. Statements in this press release about our ability to establish exclusive cooperation partnership with Yingke, for example, are forward-looking statements. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
SOURCE China Security & Surveillance Technology, Inc.