HANOI, Vietnam, February 11, 2010–Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, announced today that it has completed its purchase of 4 million newly issued ordinary shares of its subsidiary, Cavico Mining and Construction JCS. Cavico Mining issued the ordinary shares at VND16,894 per share, which is approximately USD$0.94 per share based on current exchange rates, in exchange for debt owed to Cavico and its subsidiaries by Cavico Mining. The transaction was approved by a large majority of Cavico Mining’s shareholders on January 14, 2010. Vietnam’s State Securities Commission has reviewed and cleared the issuance of these shares. Information can be found on the Web site of the State Securities Commission of Vietnam at www.ssc.gov.vn by clicking here.
Cavico Corp. and its subsidiary now own approximately 50.2% of Cavico Mining and will be able to consolidate Cavico Mining’s financials into its future financial reports beginning in the first quarter of 2010.
Mr. Ha Quang Bui, chairman & CEO of Cavico Corp., said, “We are very pleased to have this transaction conclude in such a smooth and timely manner. Cavico Corp., as majority owner of Cavico Mining, will continue to support Cavico Mining’s efforts to obtain new contracts while allowing us to recognize a higher percentage of Mining’s profits in our financial reports. We believe this is a positive outcome for all parties involved.”
About Cavico Corp.
Cavico Corp. is focused on large infrastructure projects, which include the construction of hydropower facilities, dams, bridges, tunnels, roads, mines and urban buildings. Cavico is also making investments in hydropower facilities, cement production plants and urban developments in Vietnam. The company employs more than 3,500 employees on projects worldwide, with offices throughout Vietnam and a satellite office in Australia.
Founded in 2000, Cavico is a major infrastructure construction, infrastructure investment and natural resources conglomerate headquartered in Hanoi, Vietnam. Cavico is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, ports and urban community development. One of the Company’s primary competitive advantages is its ability to nurture a project “from concept through completion” with a vertical portfolio of interrelated investment, permitting, design, construction management and facility maintenance services. Cavico’s project partners include top multi-national corporations and government organizations. The Company employs more than 3,500 full-time, part-time, and seasonal workers. For more information, visit http://www.cavicocorp.com. Information on the Company’s Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to obtain the necessary financing to continue and expand operations, to market its construction services in new markets and to offer construction services at competitive pricing, the Company’s ability to complete projects in the time frame specified; anticipated revenue from the projects to attract and retain management, and to integrate and maintain technical information and management information systems; the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company’s planned expansions, and predictions and guidance relating to the Company’s future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.