Wescast Industries Inc. (WCS.A.TO,WCS_SV_A.TO: Quote) said that, in relation with its prior-announced strategic alternatives review, Wescast reached an arrangement agreement with Sichuan Bohong Industry Co., Ltd. of China, under which Bohong, through its wholly-owned unit, Taixing International Investment Ltd., would acquire Wescast. The purchase of such capital, together with repayment by Bohong of Wescast's indebtedness, certain other liabilities and an investment in working capital, values the total transaction to Bohong at around $195 million. In association with the execution of the deal, Bohong provided Wescast with a $2 million deposit, that is only refundable to Bohong in certain situations.
Bohong requires debt financing from the China Development Bank in order to complete the Transaction. If Bohong has not received certain approvals and provided Wescast with its definitive financing documents with China Development Bank and waived its closing financing condition by August 31, 2012, either Wescast or Bohong may end the deal and, in either case, Wescast retains the $2 million deposit. Bohong may extend this deadline until November 30, 2012 by paying another $2 million deposit to Wescast on or before August 31, 2012.
Following the transaction closure, Wescast shareholders would be entitled to receive $11.00 per share cash.
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by RTT Staff Writer
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