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Vtion Wireless Technology AG plans a Management Buyout of its subsidiary Vtion Anzhuo

Frankfurt, 23 March 2015

The Supervisory Board has approved today that Vtion Wireless Technology AG (Vtion AG) sells the 100 per cent of equity stake of its subsidiary Vtion Anzhou. The shareholding offers software-related business services which consists of a customized appstore for the system Android as well as insurance industry solutions. Vtion Anzhuo only generated an insignificant part to the over-all revenues of the group and has made an operating loss in the past three years.

In this period, Vtion Anzhuo could not achieve the striven growth objectives and profitability targets. The Management Board anticipates the operating loss to be continued in the next few years. After comprehensive assessment, the Management Board and Supervisory Board of Vtion AG took the decision to sell the whole equity stake of Vtion Anzhuo to the Vtion Anzhuo management team via a management buyout.

For this acquisition, the "Ruihua Certified Public Accountants" were commissioned as an independent third party to evaluate the fair value of Vtion Anzhou. They composed an official valuation report for the transaction and determined the arm's length price. The disposal price for Vtion Anzhuo is ascertained at 6 million RMB (approx. 0.9 million Euros).

After divesting the software-related businesses of Vtion Anzhuo and the industry specific computing solutions, the Management Board permanently evaluates and reconsiders the business strategy of Vtion AG on the company's historic core competency of wireless data terminals. In order to avoid the margin pressure typically associated with hardware-centric businesses, the company will seek to develop more customized products over the course of 2015.

 

For further information, please contact:

Kirchhoff Consult AG
Andreas Friedemann, phone: +49 40 60 91 86 50,
andreas.friedemann@kirchhoff.de

 

Disclaimer concerning prognoses

Certain statements in this communication contain formulations or terms referring to the future or future developments, as well as negations of such formulations or terms, or similar terminology. These are described as forward-looking statements. In addition, all information in this communication regarding planned or future results of business segments, financial classification numbers, developments of the financial situation, or other financial or statistical data contains such forward-looking statements. The company cautions prospective investors not to rely on such forward-looking statements as certain prognoses of actual future events and developments. The company is neither responsible nor liable for these forward-looking statements. It is not responsible for updating such information, which only represents the state of affairs on the day of publication.

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