Jinzhou based specialist engineering company China Wonder Ltd (AIM: CWO) will invest £200,000 in Metroelectric plc (PLUS: METP) through a subscription for 25 million ordinary shares at 0.8 pence each. This morning Metroelectric announced its intention to acquire electric powered bicycle business Powabyke Acquisition Ltd for £120,000 in cash plus shares, with the total deal valued at £983,997.
The AIM listed company is an associate of Wonder Auto Technology Group (NASDAQ: WATG), an international supplier to the automobile industry, which is currently developing a range of electric vehicles. China Wonder said it will be working closely on the development of Powabyke as it seeks to expand business in the key Chinese market.
Additionally the AIM listed engineering firm has an option to subscribe for a further 50 million new Metroelectric shares at the same price for up to three years. The current subscription is expected to close on 29 December 2009.