Last week, Advanced Battery Tech (ABAT) announced it has entered into a letter of intent to acquire 55% of Wuxi Angell, which it has been working closely with to develop and electric bike.  ABAT will issue 2 million shares of common stock and pay out approximately 3.65 million in cash to acquire a majority portion of Wuxi Angell and the deal is expected to close in the first quarter of 2009. 

Wuxi Angell makes a variety of EV’s such as electric bikes, agricultural transport vehicles and SUV’s with annual production of around 300K vehicles which are exported to 47 countries.  The company sold 70K vehicles last year. 

Mr. Zhiguo Fu, CEO of ABAT said, “We are confident that the proposed acquisition will create synergies and bolster R&D capabilities that allow us to further penetrate and capture more e-bike market share in the E.U., U.S. and Asia-Pacific markets.  We believe the growth of electric bikes will be driven by increasing demand among consumers for environmentally friendly products and by heightened awareness of the benefits of electric vehicles within the Chinese government as well as among governments around the globe.”