June 18, 2009 (FinancialWire) — AutoChina International Ltd. began trading on the OTCBB under its new symbols AUCLF (common stock), AUCWF (warrants), and AUCUF (units) on June 16, 2009. The company’s previous symbols were SCRQF, SCRWF, SCRUF.

The company has entered into a definitive agreement to sell its consumer auto dealership business to Xinjiang Guanghui Industry Investment (Group) Co. for a cash payment of approximately $68.8 million (RMB470 million). The final amount of the cash payment will be calculated at June 30, 2009, and will be subject to PRC audit. Closing of the transaction, which is subject to customary conditions, is expected to occur by September 30, 2009.

The company expects to utilize the net proceeds from the sale to expand AutoChina’s commercial vehicle sales and financing business, which is already among the leaders in the industry in China. The company expects to report a pre-tax gain of approximately $11.7 million (approximately RMB80 million) from this transaction.

AutoChina’s chairman and CEO, Yong Hui Li, noted, “We believe this transaction, which is at a premium to AutoChina’s net asset value, represents a compelling opportunity to drive long-term value for our stockholders, customers and employees. Although we expect to initially generate lower revenues following the sale of the dealership business, we believe that the commercial vehicle business model that we have created provides a significant platform for growth, and this capital will allow for our company to accelerate this process.”

The company’s commercial vehicle sales and financing business sells and finances commercial vehicles and provides services to purchasers of vehicles such as obtaining permits and insurance. This business segment generated $34.1 million of revenues for the year ended December 31, 2008.

The company’s consumer auto dealership business offers sales, repair, parts and after-sales services to individual new car buyers through a network of 25 locally-branded dealerships throughout mainland China. This business segment generated total sales of $406.5 million for the year ended December 31, 2008. Xinjiang Guanghui Industry Investment (Group) Co., Ltd. was established in 1989.

AutoChina is a leading one-stop commercial auto sales and financing and passenger auto sales company in China.

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