Kandi In Ownership Transfer Agreement With Shanghai Maple

(RTTNews) - Kandi Technologies Group Inc. (KNDI) said Tuesday its subsidiary Zhejiang Kandi Electric Vehicles Co. Ltd. (the "JV Company") signed the Ownership Transfer Agreement with Shanghai Maple Guorun Automobile Co. Ltd., a subsidiary of Geely Automobile Holdings Ltd.

Pursuant to the terms of the Agreement, the JV Company is required to pay RMB 640.7 million (about $104 million) to acquire 100% ownership of Kandi Electric Vehicles (Shanghai) Co. Ltd. from Shanghai Maple.

The JV Company will make the payment of RMB 400 million ( about $65 million ) within 90 days upon signing the Agreement. The remaining payment will be delivered within 360 days after signing.

Both parties agreed to try to complete the transfer process of Kandi Shanghai's entire ownership with local State Administration of Industry and Commerce before December 31, 2013.

Upon the completion of this transfer, Kandi Shanghai will become 100% owned subsidiary of the JV Company. Through its 50% ownership of the JV Company, Kandi will indirectly own 50% of Kandi Shanghai.

Kandi Technologies Group, headquartered in Jinhua, Zhejiang Province, is engaged in the research and development, manufacturing and sales of various vehicles.