HARBIN, China, Sept. 6, 2011 /PRNewswire/ -- Mr. Tianfu Yang, Chairman and Chief Executive Officer of Harbin Electric, Inc. ("Harbin Electric" or the "Company"; NASDAQ: HRBN), and Abax Global Capital ("Abax") today reaffirmed their commitment to acquire all of the outstanding shares of Common Stock of Harbin Electric not currently owned by Mr. Yang, Abax and their respective affiliates for $24.00 per share in cash in a "going private" transaction, as per the merger agreement entered into on June 20, 2011. China Development Bank Corporation also today affirmed its commitment to providing financing for the going private transaction. Mr. Tianfu Yang said, "I remain fully committed to moving forward with this going private transaction, which we expect to complete in the fourth quarter. With an all-cash offer and financing fully in place, this transaction provides shareholders with immediate certain value, at a significant premium to Harbin's current and historical stock price. I am confident that this transaction is the best way to return value to Harbin shareholders." "We are pleased to partner with Tianfu Yang in this transaction," said Donald Yang, Managing Partner and Chief Investment Officer of Abax Global Capital. "Abax has expressed its strong confidence by committing to provide both equity and mezzanine financing, and we will continue providing our firm support for this transaction through its completion." Tech Full Electric Company Limited ("Tech Full Electric"), a Cayman Islands exempted company with limited liability, wholly owned indirectly by Mr. Tianfu Yang, and its affiliates have delivered to Harbin Electric a fully-executed facility agreement between China Development Bank and Tech Full Electric providing for $400 million of debt financing and a fully-executed note purchase agreement between Abax Emerald Ltd., a wholly owned subsidiary of the Abax Global Opportunities Fund, which is managed by Abax Global Capital, and Tianfu Investments Limited ("Tianfu Investments"), a Cayman Islands company directly owning 100% of the equity interest in Tech Full Electric, providing for $25 million of mezzanine financing. Abax has also delivered to Tianfu Investments an executed $38.8 million equity commitment letter and Tech Full Electric has delivered a fully-executed contribution agreement to the Company whereby members of the purchasing group will contribute 12,695,384 shares of the Company's common stock to Tech Full Electric (the equivalent of an investment of approximately $304.7 million based on the per share merger consideration of $24.00 per share). The going private transaction is subject to customary closing conditions, including the approval of the Company's shareholders (including the affirmative approval of the holders of a majority in combined voting power of the outstanding Shares not owned by the purchasing group) and is expected to close in the fourth quarter of 2011.
Harbin Electric (Nasdaq:HRBN) hit a new 52-week high Monday as it is currently trading at $23.62, above its previous 52-week high of $23.20 with 539,265 shares traded as of 9:55 a.m. ET. Average volume has been 1.7 million shares over the past 30 days.