UQM develops and manufactures electric motors, generators, power electronic controllers and fuel-cell compressors for the commercial truck, bus, automotive, marine and industrial markets.

UQM makes second attempt to find partner in China

LONGMONT — UQM Technologies Inc. on Monday announced that it has entered a stock-purchase agreement worth $28.3 million that would give a China-based vehicle manufacturer 43.9 percent ownership in the Longmont-based company.

UQM Technologies (NYSE: UQM) has agreed with Jinan-based China National Heavy Duty Truck Group Co., Ltd. through its subsidiary Sinotruk Ltd. based in Hong Kong, to create a joint-venture to manufacture and sell electric propulsion systems for commercial vehicles and other vehicles in China.

This is the second attempt UQM has made in the past year to find a partner in China. Last December, UQM shareholders put the kibosh on a deal that would have given Hong Kong’s Hybrid Kinetic Group Ltd. a controlling stake in the company for $48 million in cash.

UQM develops and manufactures electric motors, generators, power electronic controllers and fuel-cell compressors for the commercial truck, bus, automotive, marine and industrial markets.

Joe Mitchell

“Finding a strong strategic partner in Asia has been a major priority for UQM,” Joe Mitchell, UQM’s president and chief executive, said in a prepared statement.

The deal would provide UQM with access to the largest electric-vehicle market in the world and a competitive position in the global market for electric vehicles.

The deal with CNHTC is planned for two stages.

First, CNHTC will acquire newly issued common shares of UQM, resulting in a 9.9 percent ownership interest of common shares issued and outstanding. This is expected to close within 30 days of signing of the agreement.

Second, CNHTC will acquire additional newly issued common shares, resulting in CNHTC owning 34 percent of issued and outstanding common stock on a fully diluted basis.

The purchase price is 95 cents per share, which represents a 15 percent premium over the 30-day closing price average for the period ending on the last trading day before signing. The terms of the agreement were unanimously approved by the boards of directors of both companies. UQM shareholders will continue to hold their shares in UQM, and UQM stock will continue to be traded on the New York Stock Exchange.

The closing of the second stage will require approval by UQM’s shareholders. If passed, CNHTC will have the right to nominate up to three of eight directors to UQM’s board, with one CNHTC representative expected to be elected as the chairman.

For the year ending Dec. 31, Sinotruk reported revenue of $4.9 billion. It also reported shipping more than 172,000 commercial vehicles and more than 106,000 engines. Sinotruk has more than 25,000 employees. It is expected to be a significant purchaser of electric drive trains for its commercial vehicles and other customers.

Mitchell said criteria for forming a potential partnership include that the partner must  provide the necessary capital to allow UQM to enter the China market; provide the infrastructure to support continuing product development and operations; and provide access to customers in China to grow UQM’s business.

Ma Chunji, chairman of CNHTC, said UQM has developed some of the world’s leading electric propulsion systems and has a team of talented people, which is key to developing leading-edge technologies.

“Vehicle electrification is the future, and we are delighted to bring UQM technology and capabilities into the CNHTC organization,” he said.

Last quarter, UQM put its 28,204-square-foot industrial building at 41 Specialty Place on the market. At the time, Mitchell said in an earnings conference call that UQM did not need that much space, and the company was looking to move nearer to Denver.

 

LONGMONT — UQM Technologies Inc. on Monday announced that it has entered a stock-purchase agreement worth $28.3 million that would give a China-based vehicle manufacturer 43.9 percent ownership in the Longmont-based company.

UQM Technologies (NYSE: UQM) has agreed with Jinan-based China National Heavy Duty Truck Group Co., Ltd. through its subsidiary Sinotruk Ltd. based in Hong Kong, to create a joint-venture to manufacture and sell electric propulsion systems for commercial vehicles and other vehicles in China.

This is the second attempt UQM has made in the past year to find a partner in China. Last December, UQM shareholders put the kibosh on a deal that would have given Hong Kong’s Hybrid Kinetic Group Ltd. a controlling stake in the company for $48 million in cash.

UQM develops and manufactures electric motors, generators, power electronic controllers and fuel-cell compressors for the commercial truck, bus, automotive, marine and industrial markets.

Joe Mitchell

“Finding a strong strategic partner in Asia has been a major priority for UQM,” Joe Mitchell, UQM’s president and chief executive, said in a prepared statement.

The deal would provide UQM with access to the largest electric-vehicle market in the world and a competitive position in the global market for electric vehicles.

The deal with CNHTC is planned for two stages.

First, CNHTC will acquire newly issued common shares of UQM, resulting in a 9.9…