Telestone Technologies Signs Letter of Intent to Acquire Regional Competitor in Sichuan Province
Telestone Technologies Corporation (NASDAQ: TSTC) today announced that it has signed a letter of intent to acquire 100% of Sichuan Ruideng Telecom Corporation. The LOI was signed on May 12, 2011.
Under the terms of LOI, Telestone will use a combination of cash and Telestone common stock to fund the acquisition, whose terms are still being finalized. Telestone expects to sign a definitive acquisition agreement with Sichuan Ruideng soon.
Located in Chengdu in Sichuan province, Sichuan Ruideng specializes in telecom network construction and system-integration services. SR was founded in 1993 with registered capital of RMB 32.0 million (approximately $4.9 million). Today, Sichuan Ruideng is one of the largest providers of telecom network engineering services in Sichuan province and southwestern China, and has over 300 employees and about $20 million of average annual revenue in the past several years. Its business mainly covers regions of Sichuan, Yunnan, Guizhou, Hubei, and Qinghai provinces.
