ZHANGZHOU, China, Dec. 20, 2012 /PRNewswire/ -- China Zenix Auto International Limited (NYSE: ZX) ("Zenix Auto" or the "Company"), the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume, today announced that Mr. Jianhui Lai ("Mr. Lai"), the founder, chairman of the board of directors and chief executive officer of Zenix Auto, has exercised his option to purchase all of the outstanding equity of Newrace Limited from its sole shareholder, Ms. Laifan Chu ("Ms. Chu"), and as a result, has become Zenix Auto's controlling shareholder. Newrace Limited owns 143,690,400 ordinary shares of the Company, representing 69.6% of the Company's total issued and outstanding ordinary shares.
As previously disclosed, following a restructuring of the Company's business in preparation for its planned initial public offering, Mr. Lai and Ms. Chu entered into a share purchase option agreement dated as of October 25, 2010. Under that agreement, Mr. Lai had an option to purchase any or all of the share capital of Newrace Limited from Ms. Chu during the period from January 1, 2009 to December 31, 2013 at an agreed exercise price. On December 19, 2012, Mr. Lai issued a notice of exercise to Ms. Chu, pursuant to which Mr. Lai exercised his option to purchase all of the ordinary shares of Newrace Limited. These ordinary shares were transferred and delivered to Mr. Lai on December 20, 2012, with the exercise price of US$27,934,000.00 to be paid by Mr. Lai to Ms. Chu within 90 business days from December 20, 2012.
Mr. Lai commented, "This transaction further aligns my interest with our other shareholders as we strengthen our strategies to capture market share in this challenging business environment, produce strong free cash-flow and prepare for the introduction of our new commercial vehicle aluminum wheels. I remain confident that our strategies and operations will build long-term shareholder value over time."