International Building Technologies Group Inc. (OTCBB: INBG) announced it has signed a definitive agreement, via a Stock Sale and Purchase Agreement (SPA), with Wuhan Intepower Co., Ltd., in which INBG will acquire a majority of Intepower’s subsidiary, Wuhan Wufeng Machinery Manufacturing Co. Ltd. in Wuhan, China.
“INBG purchased 92 percent of the Machinery Company from Intepower for approximately USD 1.5 million. This acquisition gives INBG the ability to manufacture our panel machineries and building panels. It will also prove to be a valuable asset and provide stable revenue and income for INBG in the coming years. The Machinery Company currently has state of the art tools, experienced engineers, capability to design new lines of equipment, as well as strong customer service and after-sales support. Strategically, this acquisition will strongly support INBG’s ability to supply the market for building panels and panel machineries in China and throughout the world,” Kenneth Yeung, CEO of INBG stated in the press release.
The Machinery Company manufactures machinery equipment and production lines for rice and grain processing, as well as equipment that can be retooled to manufacture the panel production machineries that INBG plans to sell and use in several planned projects in China and other countries. As reported in audited financial information in compliance with China accounting standards, the Machinery Company’s net assets are worth RMB 18 million (approx. USD 2.5 million) and has reported revenues of RMB 25 million (approx. USD 3.5 million) for the year 2007.
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