ZAP (ZAAP.OB) said Thursday that the Commerce Department of Zhejiang Province in China has approved the company's proposed acquisition of a 51% equity interest in Zhejiang Jonway Automobile Co. Limited.
ZAP said it and Jonway now plan to move forward to satisfy the remaining conditions to closing the deal, including but not limited to those related to financing, foreign exchange authority approval in China and share registration.
According to the terms of the definitive agreements, ZAP has the right to acquire the remaining 49% of Zhejiang Jonway Automobile at the same valuation by March 30, 2011 or at a then current valuation after that date.
ZAP plans to capitalize on the growing automotive and electric vehicle market in China through the proposed acquisition of a majority stake in Zhejiang Jonway Automobile.
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