Hong Kong com­pany’s takeover of UQM hits snag

The Denver Post - - BUSINESS - By Shay Cas­tle

The takeover of Longmont elec­tronic ve­hic­u­lar propulsion sys­tems maker UQM Tech­nolo­gies by Hong Kong’s Hy­brid Ki­netic Group has hit a speed bump af­ter share­hold­ers voted down a pro­posal to move the $48 mil­lion deal along.

UQM in June an­nounced its in­ten­tion to sell 58 per­cent of the com­pany, 66.5 mil­lion shares, to HKG, a move that would help UQM bet­ter cap­ture the Asian mar­ket.

Share­hold­ers voted down a pro­posal to re­duce the vot­ing re­quire­ments for fu­ture amend­ments to the com­pany’s ar­ti­cles of in­cor­po­ra­tion from the cur­rent two-thirds thresh­old to a ma­jor­ity 51 per­cent.

“Some of our share­hold­ers were con­cerned that the voice of the mi­nor­ity share­hold­ers might not be as strong” if that pro­posal passed, said David Rosen­thal, chief fi­nan­cial of­fi­cer at UQM.

How­ever, the deal is not yet dead.

A sec­ond pro­posal, to in­crease the num­ber of shares of out­stand­ing stock to per­mit suf­fi­cient shares to be is­sued to HKG, was de­layed when the meet­ing was ad­journed.

The ad­journed meet­ing now will take place Jan. 10 at UQM’s head­quar­ters in Longmont.

UQM is known glob­ally for mak­ing power-dense, high-ef­fi­ciency elec­tric propulsion sys­tems for the com­mer­cial truck, bus, au­to­mo­tive, marine, mil­i­tary and in­dus­trial mar­kets.

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