Transnational Automotive Group Acquires Bonanza Estates S.A. and Bonanza Estates in Cameroon
Transnational Automotive Group (OTCBB: TAMG)
SEATTLE, WASHINGTON–(MARKET WIRE)–Jun 19, 2006 — Transnational Automotive Group, Inc. (OTC BB:TAMG.OB – News) (”TAUG”) today announced that it has signed an agreement to acquire 81% of Bonanza Estates S.A. (BE-SA), and 40% of Bonanza Estates. BE-SA is a real estate development and management company that manages the Bonanza Estates free hold and lease hold land assets in the port town of Limbe, Cameroon, including 518 acres of prime concession state land at Batoke near Limbe in Cameroon, Victoria Garden Hotel at Limbe Botanic Garden, Cameroon and two rock quarry sites.
“As part of our strategy of managing and supplying buses and taxis in Cameroon and the surrounding region, we needed to find a location close to the port in Limbe where we could put semi knocked down assembly factories,” said CEO, Joseph Parker. “We believe doing final assembly of buses and taxis in Cameroon will reduce the landed cost of the vehicle, as well as create jobs in Cameroon. In addition, the land that Bonanza Estates S.A manages was recently granted “Industrial Free Zone” status, entitling us to further tax and tariff savings.”
Under the terms of the agreement, TAUG will pay $500,000 USD cash for 81% of BE-SA, and will issue 4,000,000 common shares to Bonanza Estates shareholders for 40% of Bonanza Estates, representing an approximate value of $10,000,000 USD. TAUG will take over the business and development plan that BE-SA completed. This plan includes the opening of two rock quarries and two hotels. Additionally, TAUG intends to construct and operate up to three automotive facilities in the Bonanza Estates Industrial Free Zone.
“We are very pleased with this acquisition and we are currently completing our feasibility studies and plans for the refurbishment of the Victoria Garden Hotel as well as opening one of the rock quarries. However, we believe our preliminary analysis shows that the cash flow from these assets could help fund the development of the factories as well as our growth plans in Cameroon,” continued Mr. Parker.
Transnational Automotive Group (OTC BB:TAMG.OB – News), a Nevada corporation, is a transportation management, sales and manufacturing company. Our vision is to become the leading provider of transportation management and vehicle sales in the developing world. Headquartered in Seattle, WA, TAUG has been established through key acquisitions of leading transportation and automotive businesses.
This news release contains certain “Forward-Looking Statement” within the meaning of Section 21E of the United States Security Exchange Act of 1934. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents files from time to time with the Securities Exchange Commission.
Contact:
Contacts:
Transnational Automotive Group, Inc.
Mr. Dan Goldman
Director, VP Business Development and Treasurer
(206) 262-7413
(206) 262-7814 (FAX)
dgoldman@transauto-group.com
http://www.transauto-group.com
Source: Transnational Automotive Group, Inc.
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