Electric vehicle maker ZAP to buy China's Jonway (San Francisco)
ZAP Inc. is launching in the Chinese market.
The Santa Rosa electric vehicle maker has agreed to buy a 51 percent stake in Jonway Automobile Co., a subsidiary of the Chinese vehicle manufacturer Jonway Group, in the first phase of a complete acquisition of the company.
ZAP (OTC: ZAAP) will pay $29.03 million in cash for the stake.
ZAP will form a new company, Zap Jonway. Jonway's 3.6 million-square-foot factory has a capacity of 30,000 vehicles per year.
Directors of both companies signed the merger agreement on July 2.
The deal gives ZAP the right to acquire the remaining 49 percent of Zhejiang, China-based Jonway Automobile following completion of the deal and final regulatory approval.
ZAP, which makes electric cars, trucks and scooters, hopes to cash in on the growing automotive and electric vehicle market in China.
Read in the San Francisco Business Times.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.