Hong Kong company’s takeover of UQM hits snag
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.