SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF
FOREIGN ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
For
the
month of September 2006
HIGHWAY
HOLDINGS LIMITED
(Translation
of Registrant's Name Into English)
Suite
810, Level 8
Landmark
North
39
Lung
Sum Avenue
Sheung
Shui
New
Territories, Hong Kong
(Address
of Principal Executive Offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form
20-F
X
Form
40-F
___
(Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes
___
No X_
(If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______________.)
Attached
to this Report on Form 6-K is the press release issued by the registrant on
September 19, 2006.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
| HIGHWAY HOLDINGS LIMITED | ||
| |
|
|
| Date: September 29, 2006 | By: | /s/ ROLAND W. KOHL |
| Roland W. Kohl | ||
| Chief Executive Officer | ||
|
NEWS
RELEASE
|
| CONTACTS: | Gary S. Maier/Crystal Warner | ||
| Maier & Company, Inc. | |||
| (310) 442-9852 |
HIGHWAY
HOLDINGS ACQUIRES GOLDEN BRIGHT PLASTIC
MANUFACTURING
COMPANY LIMITED
--
Transaction Expands Plastic Components Manufacturing Capabilities and
Expands
its OEM Customer Base --
HONG
KONG —September 19, 2006 — Highway
Holdings Limited (Nasdaq:HIHO) today announced it has completed the acquisition
of Golden Bright Plastic Manufacturing Company Limited, headquartered in
Kowloon, Hong Kong, with an initial cash payment of $514,000 and subsequent
additional payments of up to $1.0 million, subject to certain performance
measures, payable over a three-year period.
The
transaction also includes the acquisition of assets and the business of a
company related to Golden Bright. Golden Bright and this related business
generated combined revenues of approximately $6.5 million for the year ended
December 31, 2005, with net profit of approximately $278,000 and EBITDA of
approximately $536,000. The net asset value of these two combined entities
was
approximately $615,000 at December 2005. The financial statements of Golden
Bright and the acquired related business were not prepared in accordance with
U.S. GAAP standards, and are unaudited. An independent due diligence review
was
conducted for the company by an independent international audit firm and by
an
independent law firm.
“This
acquisition represents an important stage in Highway Holdings’ evolution and its
new strategy to leverage the company’s current original equipment manufacturing
capabilities by expanding and integrating related technologies and expertise
through acquisitions and internal growth,” said Roland Kohl, chairman and chief
executive officer of Highway Holdings.
He
noted
that Golden Bright has achieved an impressive growth rate in recent years,
with
a well-recognized customer base -- including U.S. and French companies. “We
believe there are tremendous synergistic benefits to be realized for customers
of both Highway Holdings and Golden Bright, and we look forward to the
opportunities ahead,” Kohl added.
He
indicated that Peter Wong, the general manager and founder of Golden Bright,
will continue as a manager under a long-term contract, with a commitment to
provide the necessary expertise and team to achieve solid growth performance.
He
reiterated that the ultimate purchase price is contingent upon the management
team meeting certain performance measures.
Kohl
emphasized that he anticipates Golden Bright’s current customer base will remain
with the company, with potential opportunities to gain additional business
by
offering other OEM services. “In addition, Highway Holdings’ current OEM
customers, particularly those requiring high-quality plastic components, will
greatly benefit from our expanded capabilities and all-inclusive manufacturing
expertise,” Kohl said.
Headquartered
in Kowloon, Hong Kong, with operations located in Ping Hu, China, Golden
Bright Plastic Manufacturing specializes in tool making, plastic injection
molding, silk screen printing, spray painting and mechanic and electronic
assembly. Golden Bright produces components, subassemblies and finished products
for its OEM customers.
About
Highway Holdings:
Highway
Holdings produces a wide variety of high-quality products for blue chip original
equipment manufacturers -- from simple parts and components to sub-assemblies.
It also manufactures finished products, such as LED Lights, radio chimes and
other electronic products. Highway Holdings is headquartered in Hong Kong and
operates three manufacturing facilities in the People's Republic of
China.
Except
for the historical information contained herein, the matters discussed in this
press release are forward-looking statements which involve risks and
uncertainties, including but not limited to economic, competitive, governmental,
political and technological factors affecting the company's revenues,
operations, markets, products and prices, and other factors discussed in the
company’s various filings with the Securities and Exchange Commission, including
without limitation, the company’s annual reports on Form 20-F.
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