Reuters: Mergers News: UPDATE 1-China's Sichuan Bohong to buy Canada's Wescast

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UPDATE 1-China's Sichuan Bohong to buy Canada's Wescast Jun 1st 2012, 12:40 Fri Jun 1, 2012 8:40am EDT June 1 (Reuters) - Canadian auto parts maker Wescast Industries has agreed to be bought by China's Sichuan Bohong Industry Co for C$145.6 million, about $34 million less than the price it had expected when the deal was first floated in September. Wescast, which supplies cast iron exhaust manifolds for cars and light trucks, signed a memorandum of understanding with Sichuan Bohong last year that pegged the takeover price at C$13.60 per share, or about C$180 million. Wescast said on Friday it had now agreed to be bought for C$11 per share. It gave no reason for the lower price. The deal is valued at C$195 million including debt, other liabilities and an investment in working capital, Wescast said. The transaction took nearly 9 months to come together following the initial agreement after Sichuan Bohong did not pay a required C$2 million deposit. Wescast has both Class A and Class B shares. For purposes of the deal, all B shares will be converted to A shares.

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