On Sep. 16th, 2011, Shanghai Prime Machinery Company Limited announced that it successfully bid for the 100% equity interest in the Bolt Factory and the Research Centre sold by SEG from the Equity Exchange. The successful bid price for the Bolt Factory and the Research Centre was RMB 30.8 million and RMB 58.6 million, respectively. As a result, the total consideration for the Proposed Acquisition is RMB 89.4 million.

Upon passing of the relevant ordinary resolution by the Independent Shareholders, Shanghai Prime will enter into the Acquisition Agreement with SEG to acquire the Bolt Factory and the Research Centre from SEG at the successful bid price.

SEG is a controlling shareholder of Shanghai Prime holding approximately 47.18% equity interest in the total issued share capital of Shanghai Prime. The Bolt Factory mainly engages in the manufacturing of high strength hexagonal bolts, twisted shear type high strength bolts and truss bolts, as well as the sales and marketing of the products. The Research Centre mainly engages in research and development, providing services of expertise and quality testing for fasteners and related equipment. It also engages in the production and manufacturing of licensed machinery, fasteners and related equipment.

Source: www.pmcsh.com