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Chinese Company Buys Stake in Listed U.S. Firm
The Wanxiang (Universal Joints) Group Company, headquartered in Hangzhou, capital of east China's Zhejiang Province, announced that its subsidiary in the United States has bought a 21 percent stake in Universal Automotive Industries (UAI), Inc, a listed American company based in Chicago.
With the stake procurement, the Wanxiang conglomerate has become UAI's biggest share holder and one representative of the conglomerate will be posted as co-chairperson on the board of UAI, said sources from the conglomerate.
Lu Guanqiu, a farmer-turned entrepreneur and also President of the conglomerate, said that the procurement will enable his conglomerate to get the backing of advanced technologies in automobile braking components, help promote the sale of the conglomerate's new products on the world market and promote the group company's fund raising on the overseas market.
Before this move, the Wanxiang Group Company had set up or taken over 16 overseas firms.
Founded in 1981, UAI mainly produces and sells braking appliances and components. It went public on the NASDAQ in December 1994 and chalked up US$71 million in sales last year.
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