Wescast Industries Enters into MOU with China’s Sichuan Bohong

Wescast Industries Inc., a Brantford, Ontario-based supplier of cast exhaust manifolds for passenger cars and light trucks, has entered into a Memorandum of Understanding (MOU) with China’s Sichuan Bohong Industry Co. Ltd. The MOU outlines a proposed acquisition by Bohong of 100% of the issued and outstanding capital of Wescast at an expected price of approximately C$13.60 per share in cash based on Wescast’s expected transaction expenses and outstanding shares and share-based payment obligations. Bohong has provided Wescast a deposit of C$2 million as a sign of its intent to complete the acquisition. The proposal is subject to a number of conditions and approvals with an exclusivity period extending until December 30, 2011. The Bohong Group is engaged in the sales, spare parts, service and survey of automobile operations, manufacturing, real estate and new energy.