Gushan Environmental Energy Limited Announces Signing of Agreements to Acquire a Controlling Interest in Guangzhou Taiyue Communications Cable Co

Gushan Environmental Energy Limited GU today announced that it has entered into definitive agreements to acquire a controlling interest in Guangzhou Taiyue Communications Cable Co. Ltd., a PRC-based company that is currently engaged in the manufacture and sale of copper cable for applications that include communication and personal computing. The acquisition will be effected through several transactions whereby Engen Investments Limited, a 75%-owned subsidiary of Gushan which indirectly holds Gushan's recycled copper products businesses, will acquire 100% of the equity interest in Taiyue in exchange for (i) up to 20,000,000 newly issued ordinary shares of Gushan, and (ii) up to a 10.63% interest in Engen, to be issued over a period of three years. The timing and total aggregate amount of shares to be issued is subject to adjustment pursuant to an earn-out arrangement. The closing of each of the Transactions is subject to the satisfaction of, among others, customary closing conditions, including obtaining approvals from relevant PRC governmental authorities. The Company also today announced that the board of directors of Engen has granted Mr. Jianqiu Yu, a director of Engen and the Chairman and Principal Executive Officer of Gushan, an option to purchase up to 1,013 ordinary shares of Engen at an exercise price of RMB63,179 per share.