On September 11th, Kaixin Auto announced that it has signed a non-binding letter of intent for acquisition with WM Motor Technology Group Company Limited (referred to as “WM Motor”). The plan is to issue a certain number of new shares to acquire 100% equity held by its shareholders.
Kaixin Auto stated: WM Motor, established at the end of 2015, is a new energy intelligent vehicle company with comprehensive capabilities in design, research and development (hardware and software), supply chain management, complete vehicle and battery pack manufacturing, online digital marketing, offline sales and service, automotive finance, etc.
In the fields of vehicle integration, powertrain systems, intelligent cockpit, and autonomous driving, WM Motor has its own core technologies. WM Motor has successfully developed and delivered four models in bulk: E5, EX5, EX6, W6, and M7 is about to be delivered. It has already delivered over 100,000 smart electric passenger vehicles in approximately 200 cities in China with top-notch product quality and user experience.
Currently, WM Motor has two Industry 4.0 standard intelligent manufacturing bases: the Wenzhou production base and the Huanggang production base. WM Motor is the first and representative company among new forces in car manufacturing that combines both intelligent manufacturing bases and two qualifications for producing new energy vehicles. It is also the first car company among new forces in car manufacturing to achieve full digitalization of the entire industry chain.
WM Motor’s management team has extensive international management experience. In 2023, they achieved significant breakthroughs in overseas expansion and actively promoted diversified cooperation projects in the European Union, Middle East, ASEAN, North America, and other regions. Some models of WM Motor have also been the first to obtain EU WVTA certification and SSTA certification (EX5 model for WVTA, E5 model for SSTA).
Kaixin Auto’s Chairman and CEO, Lin Mingjun, stated: “The brand and product positioning of WM Motor’s fashionable technology align perfectly with Kaixin Auto’s development plans. Through this merger and collaboration, WM Motor will also have a larger capital platform to better promote the development and implementation of the smart mobility industry!”
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It is worth mentioning that, also on September 11th, WM Motor posted on its official Weibo account stating that after careful consideration, WM Motor voluntarily terminated the RTO process with Apollo Group at The Stock Exchange of Hong Kong. Currently, WM Motor remains an important shareholder of Apollo Group and will continue to support its development in the future.
On September 8th, Apollo Group (00860.HK) announced on The Stock Exchange of Hong Kong that all parties involved have agreed to terminate the acquisition agreement with WM Motor. Therefore, the acquisition and placement will not proceed.
The announcement mentioned the reasons for terminating the acquisition, including global market volatility, continued uncertainty in the financial markets, and short-term economic recovery. The announcement from Apollo Group implies that WM Motor, which was previously mired in a quagmire, has lost the opportunity to list on the Hong Kong Stock Exchange.