<article>Nasdaq-listed power steering components supplier <a href="https://www.dealstreetasia.com/?s=China%20Automotive Systems">China Automotive Systems</a> will remain public for now after the plan to take the company private was called off.</article>

Nasdaq-listed power steering components supplier <a href="https://www.dealstreetasia.com/?s=China%20Automotive Systems">China Automotive Systems</a> will remain public for now after the plan to take the company private was called off.
The original plan was for the company chairman Hanlin Chen and <a href="https://www.dealstreetasia.com/?s=Morgan%20Stanley Private Equity Asia">Morgan Stanley Private Equity Asia</a> to buy out the company for about $172 million.
In a filing in September 2017, China Automotive Systems said the buyer group was willing to buy all outstanding shares of the company for $5.45 apiece.
However, the company&#8217;s board of directors revealed that it has received a letter dated August 16, 2018 from the buyer group withdrawing its non-binding buyout proposal.
The letter, according to an <a href="http://www.rttnews.com/2927988/china-automotive-systems-chairman-withdraws-offer-to-buyout-company.aspx?type=maa">RTTNews</a> report, stated that the buyer group has decided to withdraw the proposal due to recent market conditions and is terminating further discussions related to the offer.
The reason for the withdrawal was not specifically disclosed although a quick look at the company&#8217;s latest financial report could give a hint.
Last March, the company announced its financial results for the fourth quarter of 2017, showing net sales dipping to $143.7 million from $149.6 million in the same quarter of 2016.
China Automotive said the net sales decrease was mainly due to the exceptionally strong Chinese auto market in the fourth quarter of 2016 and the production for new products targeting North American customers reaching its full capacity.
Its gross profit was also down to $16.5 million during the period, from $21.8 million in the fourth quarter of 2016.
Loss from operations was $40 million in the fourth quarter of 2017, compared to income from operations of $5 million in the same quarter of 2016. The loss was mainly due to lower gross profit and higher investment in R&amp;D and selling expenses, the company stressed.
China Automotive is a supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures.
The company said it owns three trademarks covering automobile parts and more than 190 Chinese patents covering power steering technology. It is also in the process of integrating new advanced technologies such as electronic chips in power steering systems into its current production line.
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Nasdaq-listed power steering components supplier China Automotive Systems will remain public for now after the plan to take the company private has been called off.

Proposal to take China Automotive Systems private called off

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Proposal to take China Automotive Systems private called off

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