The deal prices out to 55 cents/share for 80% of the company. 49 cents last up two cents.Ailing battery maker A123 Systems has found a savior and potential acquirer. Chinese auto giant Wanxiang says it plans to invest up to $450 million in A123, in a deal that could eventually see Wanxiang own 80 percent of the firm. The entire $450 million investment is subject to A123 meeting certain conditions.Suffering battery maker A123 Systems has found a lifeline in Chinese auto giant Wanxiang. Wanxiang will invest up to $450 million in A123 which could see it own up to 80 percent of the company.
The CEO of A123 David Vieau called the news “the first step toward solidifying a strategic agreement that we believe would remove the uncertainty regarding A123′s financial situation.” A123 announced earnings today, too, and for the second quarter lost $82.90 million, up from $55.40 million from the second quarter a year earlier.
A123 has been bleeding cash for months. In the first quarter of this year A123 lost $125 million, more than double the loss from the first quarter of 2011. Revenues are also just trickling in: for the second quarter A123 generated just $16.99 million. That’s less than half of the revenues it generated for the second quarter in 2011....MORE
Here's the last shareholder slideshow dated May 15.