HANGZHOU, China, Sept. 15, 2015 /PRNewswire/ -- China Shengda
Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a
leading Chinese paper packaging company, today announced that on
September 15, 2015 it was informed by
Mr. Nengbin Fang, its Chairman, Mr. Wuxiao Fang,
Ms. Congyi Fang, its director, Mr. Yueming Qi, Mr. Baishun Shen, Mr. Guofang Wang, Mr. Zumao Shi, Ms. Lanfang Zhang, Bigtree Capital Limited, Mr.
Zhanggen Xu, Mr. Jinfa Ye, Mr.
Huohong Wang, Mr. Daliang Teng, its
Chief Executive Officer, Ms. Haihua
Yu, Envision Capital Partners, L.P., CSV China Opportunities
Fund, L.P., Ray Shi China Small Mid Cap Select Fund, LB Holdings
II, LLC and Newberg Road Partners, L.P., representing certain other
shareholders (collectively, the "Contributing Stockholders") that,
pursuant to a contribution and subscription agreement, dated as of
May 21, 2015, by and among the
Contributing Stockholders, Yida International Holdings Limited, a
British Virgin Islands company
("Parent"), Yida International Acquisition Limited, a newly formed
Nevada company and wholly owned
subsidiary of Parent ("Merger Sub"), and Eastlake Capital Limited,
a British Virgin Islands company
wholly-owned by Mr. Nengbin Fang, (i) the Contributing Stockholders
contributed all of their shares of common stock of Shengda, par
value $0.001 per share (the "Shares")
to Parent, which represent approximately 90.8% of the total issued
and outstanding shares of Shengda, and (ii) Parent contributed the
Shares to Merger Sub.
As a result of these transactions, Merger Sub acquired
approximately 90.8% of the total issued and outstanding shares of
common stock of Shengda. On September 15,
2015, Shengda and Merger Sub filed the Articles of Merger
with Shengda and Merger Sub (the "Merger") became effective on
September 15, 2015. As a result of
the Merger, Shengda became a wholly owned subsidiary of Parent. The
Company also announced today that at its request, on September 15, 2015, the NASDAQ Stock Market LLC
filed a delisting application on Form 25 with the Securities and
Exchange Commission (the "SEC") to delist and deregister the
Company's common stock. Shengda expects to file a Form 15 with the
SEC to terminate its reporting obligations as a public company
under the U.S. securities laws on or about September 25, 2015. The Company's obligations to
file with the SEC certain reports and forms, including Form 10-K,
Form 10-Q and Form 8-K, will be suspended immediately as of the
filing date of the Form 15. Existing stockholders of the Company's
common stock will be notified by mail of the cancellation of their
shares and their right to receive $7.25 in cash per share upon the submission of
their stock certificates in accordance with proper procedures.
About Shengda
Shengda is a leading paper packaging company in China. It is principally engaged in design,
manufacturing and sale of flexo-printed and color-printed
corrugated paper cartons in a variety of sizes and strengths. It
also manufactures corrugating medium paper and corrugated
paperboards, which are used for the production of flexo-printed and
color-printed cartons. The Company provides paper packaging
solutions to a wide variety of industries, including food,
beverage, cigarette, household appliance, consumer electronics,
pharmaceuticals, chemicals, machinery and other consumer and
industrial sectors in China.
Safe Harbor Statements
This press release may contain forward-looking statements
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Any statements
set forth above that are not historical facts are forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. Such factors include, but are not
limited to, the Company's ability to expand to new markets, the
ability to grow business through vertical integration and
geographical expansion, the ability to access capital for expansion
and continued investment in R&D, the ability to acquire other
companies, changes from anticipated levels of sales, changes in
national or regional economic and competitive conditions, current
or future volatility in the credit market and future market
conditions, changes in relationships with customers, changes in
profit margins of principal product and other factors discussed
from time to time in the Company's filings with the SEC. The
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as required by law.
Company Contact:
China Shengda Packaging Group
Inc.
Cindy Hu, Board Secretary
Tel: +86-571 8283 8770
E-mail: cindy.hu@cnpti.com
Website: http://www.cnpti.com
Investor Relations Contact:
Weitian Group LLC
Tina Xiao
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
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SOURCE China Shengda Packaging Group Inc.