Archive for the ‘BVI Company Mergers & Acquisitions’ Category

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BVI-registered Tongxin International, Ltd. announces Third Quarter 2008 Financial Results

Saturday, December 27th, 2008

BVI company Tongxin International Ltd., formed as a result of a merger between the BVI-registered Asia Automotive Acquisition Corporation (AAAC) and Hunan Tongxin Enterprise Co., Ltd. , published the financial results for the third quarter ended September 30, 2008. The BVI company manufacturing engineered commercial vehicle body structures and stamped body parts for the Chinese commercial vehicle market, annnounced 4.7% increase of revenues, compared to the third quarter results of the year 2007. In this period of 2008 revenues made $22.8 mln. The third quarter net income made $2.1 mln, decreased by 16.2%.

For the third quarter ended September 30, 2008, net revenues reached $22.8 mln – an approximate $1.1 mln, or 4.7% increase over the same period of the prior year. Cost of goods sold were $18.5 mln in the third quarter 2008 – a 13% increase if compared to the same period of 2007. Gross profits for the third quarter were $4.4 mln, compared to $5.5 mln in the third quarter of 2007. Gross margin percentages decreased to 19.2% in 2008 from 25.1% for the three months ended September 30, 2007 – mainly due to higher costs in raw materials, especially the 29% price increase in cold-rolled steel since January 1, 2008. Operating income and operating margin for the third quarter were $2.9 million and 12.6%, versus $4.1 million and 18.9% in 2007. Total operating expenses for the third quarter of 2008 were $1.5 mln – versus $1.4 mln for the same period of 2007. Operating expenses in this period made 6.5% of revenues compared with 6.2% for the same period of 2007.

Revenue increased approximately 21.3% to $76.3 mln for the nine months ended September 30, 2008, as compared to $62.9 mln for the same period last year. Net income made $8.1 mln, having increased by 8.0% from the same period of 2007. Operating expenses for the nine months ended September 30, 2008 were $4.7 mln, compared to $3.9 mln for the same period of 2007.

As of September 30, 2008, Tongxin International had approximately $19.0 mln in cash and cash equivalents. Stockholder’s equity was $34.2 mln, the amount which made an increase of 52.8% versus the same period of 2007.

Posted in BVI Company & Subsidiary Financials, BVI Company Mergers & Acquisitions | No Comments »

BVI Group Grows into one of world’s major airlines

Tuesday, November 11th, 2008

Virgin Atlantic Ltd. airline is planning to grow into one of the world’s major airlines. Its desire to combine with smaller rival British Midland Airways Ltd. became more ambitious when the British carrier, known as BMI, announced it would sell a 50% controlling stake to Deutsche Lufthansa AG.
All the three companies would possibly link under the Virgin brand. Virgin has been interested in BMI for a long time, figuring the airline’s routes within Britain and to Europe would complement Virgin Atlantic’s flights between London and the U.S. Representatives of Lufthansa and BMI did not give comments concerning their linking up with Virgin Atlantic.

British Virgin Islands-registered Virgin group has become one of the best-known brands in Britain. The mail-order business of the group started in 1969, and now the Virgin group has stakes in many diverse operations. The credit crunch makes pressure on at least one of Virgin’s debts, although the whole amount of debt of the BVI group is not clear yet, as Virgin Group is not publicly traded and does not report its accounts. British cable-television company, Virgin Media Inc., faced a deadline for lenders to approve postponing GBP 1.66 billion in loan payments due in 2010 and in the beginning of 2011. According to regulatory filings, the company might not have enough cash to repay the debt.

Posted in BVI company investments, BVI Company Joint Ventures, BVI Company Mergers & Acquisitions | No Comments »

Russian Telecom’s company MTS registers company in BVI to buy a stake in Euroset

Wednesday, October 8th, 2008

The investment company ANN has purchased full stock of Russia’s largest mobile handset retailer Euroset, which has over 5,000 retail outlets in Russia and neighbor countries. It is known that this investment company belongs to Russian billionaire Alexander Mamut.

Also, one of Russian newspapers informed that Russia’s largest mobile operator MTS had registered an offshore company Dega Retail Holding Ltd. in the British Virgin Islands, with the purpose to buy a stake in Euroset.

Meanwhile, it is reported that Euroset and Mamut confirmed closing of the deal on September 22. The parties did not disclose the real size of the transaction, however, according to the unofficial sources, Mamut will pay around US$400 million for Euroset, without taking into account its liabilities in the amount of US$850 million.

Posted in BVI Company Formation, BVI Company Mergers & Acquisitions, BVI Holding Companies | No Comments »

S3 Investment Company comments on the growth of BVI-owned Dalian Chuming

Tuesday, September 23rd, 2008

On September 15, the representative of the holding corporation S3 Investment Company, Inc. commented on the post reverse merger progress of Dalian Chuming, a client of S3′s wholly owned Redwood Capital subsidiary that now trades in the U.S. as Energroup Holdings Corporation, which assists private Chinese companies in accessing the U.S. capital markets through reverse mergers into public companies. The company participated in the transaction involving Dalian Chuming: Energroup Holdings Corporation is a Nevada corporation which acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited (PSI), a company registered in the British Virgin Islands and being the whole owner of China-based Dalian Chuming.

Under the terms of the reverse merger agreement, Redwood Capital was issued 428,095 shares of Energroup Holdings Corporation as the equity portion of its payment for advisory services provided as part of the Chuming transaction.

Institutional and accredited investors participated in a US$17.0 million private placement with Energroup Holdings Corporation, paying US$4.40 per share. At the placement price, the value of Redwood Capital’s equity position in Energroup Holdings Corporation would exceed US$1.8 million.

Posted in BVI Company Mergers & Acquisitions, Private Placement | No Comments »

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