China Shengda Packaging Group Chairman Withdraws Preliminary Offer to Take
HANGZHOU, China, Nov. 13, 2012
HANGZHOU, China, Nov. 13, 2012 /PRNewswire-FirstCall/ -- China Shengda
Packaging Group Inc. (NASDAQ: CPGI), ("China Shengda Packaging" or the
"Company") a leading Chinese paper packaging manufacturer, today announced,
that the special committee of its board of directors (the "Board") has
received a letter (the "Letter") from its Chairman, Mr. Nengbin Fang ("Mr.
Fang"), withdrawing the preliminary non-binding proposal that he submitted to
the Board on October 15, 2012 to acquire all of the shares of common stock of
the Company that are not currently owned by him and his family in a
going-private transaction, although he intends to continue to pursue a
possible going-private transaction with respect to the Company. Mr. Fang
stated in an amendment to his Schedule 13D filing with the Securities and
Exchange Commission that he is in preliminary discussions with a limited
number of shareholders of the Company and potential debt financing sources,
including VStone Investment Management Limited, in each case regarding their
potential participation in a going private transaction, and that he may
approach one or more other shareholders of the Company for such purpose. There
can be no assurance, however, that Mr. Fang will make another proposal to take
the Company private in the future or that if he does make another proposal to
take the Company private that it will be consummated.
A copy of the Letter is attached as Exhibit A.
About China Shengda Packaging Group Inc.
China Shengda Packaging Group Inc. is a leading paper packaging company in
China. It is principally engaged in the design, manufacturing and sale of
flexo-printed and color-printed corrugated paper cartons in a variety of sizes
and strengths. It also manufactures corrugated paperboards, which are used for
the production of its flexo-printed and color-printed cartons. The company
provides paper packaging solutions to a wide variety of industries, including
food, beverage, cigarette, household appliance, consumer electronics,
pharmaceuticals, chemicals, machinery and other consumer and industrial
sectors in China. For more information, visit http://www.cnpti.com.
Safe Harbor Statement
This press release may contain forward-looking statements. Any statements set
forth above that are not historical facts are forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such factors include,
but are not limited to, the Company's ability to secure debt financing, the
ability to complete the proposed transaction, the ability to obtain approvals
required to consummate the transaction, the ability to develop and market new
products, the ability to access capital for expansion and continued investment
in R&D, the ability to acquire other companies, changes from anticipated
levels of sales, changes in national or regional economic and competitive
conditions, changes in relationships with customers, changes in profit margins
of principal product and other factors discussed from time to time in the
Company's filings with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise, except as
required by law.
Company Contact: Investor Relations
China Shengda Packaging Group Inc. CCG Investor Relations
Cindy Hu, Board Mark Collinson
Tel: +86-571 8283 8770 Tel: +1-310-954-1343
E-mail: email@example.com Email:
November 13, 2012
The Special Committee of the Board of Directors of China Shengda Packaging
No. 2 Beitang Road
Xiaoshan Economic and Technological Development Zone
Hangzhou, Zhejiang Province 311215
People's Republic of China
Reference is made to the preliminary non-binding proposal (the "Proposal")
that I, Nengbin Fang, submitted to the board of directors of China Shengda
Packaging Group Inc. (the "Company") on October 15, 2012 stating my intention
to acquire all of the shares of common stock of the Company that are not
currently owned by me or my family in a going-private transaction for cash
consideration of US$1.40 per share.
Although I intend to continue to pursue a possible going-private transaction
with respect to the Company, I have decided to withdraw the Proposal. I will
promptly file an amendment to Schedule 13D with respect to this withdrawal.
I would like to personally express my sincerity to thank the members of the
special committee for your hard work in evaluating the Proposal.
Should you have any questions regarding these matters, please do not hesitate
to contact me.
/s/ Nengbin Fang
SOURCE China Shengda Packaging Group Inc.
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