BRANTFORD, ONTARIO -- (Marketwire) -- 03/21/13 -- Wescast Industries Inc. (TSX: WCS.A) ("Wescast") announced today that Sichuan Bohong Industry Co., Ltd. ("Bohong") has advised that it is continuing to work with China Development Bank Corporation ("CDB") toward finalizing definitive loan documents in connection with the previously-announced plan of arrangement (the "Arrangement") pursuant to which Bohong, through its wholly-owned subsidiary, will acquire all of the issued and outstanding capital of Wescast. Bohong has advised Wescast that it expects that the financing documents will be entered into early next week. Wescast will provide an update on the expected closing date of the Arrangement at that time.
Wescast Industries Inc. is the world's leading supplier of cast exhaust manifolds for passenger cars and light trucks. In addition to other products, Wescast designs, casts, machines and assembles exhaust system components, primarily exhaust manifolds, turbo charger housings and integrated turbomanifolds for automotive original equipment manufacturers ("OEMs") and Tier 1 customers for the car and light truck markets in North America, Europe, Asia, Africa, South America and Australia. Wescast employs approximately 2,200 people in 7 production facilities and 5 sales and design centres in Canada, Hungary, the United States, Germany, Japan and China. Wescast also has sales and technical design representation in the United Kingdom and France. Wescast is recognized worldwide for its quality products, innovative design solutions and highly committed workforce. Learn more at www.wescast.com.
The contents of this news release contain statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking statements based on certain assumptions. Forward-looking statements are provided for the purpose of providing information about Wescast's current expectations and plans relating to the proposed acquisition. Persons reading this news release are cautioned that such information may not be appropriate for other purposes. Such forward looking statements include the statement regarding the proposed acquisition. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking statements.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward looking statements, including CDB providing the financing and the closing of the proposed acquisition.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties principally relate to the risks associated with the proposed acquisition include, but are not limited to: the failure of Bohong to enter into the definitive loan agreements with CDB for the financing that Bohong requires to complete the proposed acquisition, or if entered into, satisfy the conditions thereunder, Bohong's lack of sufficient resources to complete the proposed acquisition in the absence of financing from CDB, Wescast's lack of recourse against CDB should CDB fail to provide the required financing, the possibility that any conditions to closing of the proposed acquisition under the arrangement agreement may not be satisfied or waived, Bohong's assets and management being located outside of Canada limiting the practical ability of Wescast to enforce its legal rights under the arrangement agreement, including any judgement obtained in a Canadian court, against Bohong.
Wescast does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.
Wescast Industries Inc.
Edward G. Frackowiak
Chairman and CEO
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