China Auto Electronics

[cyclone]

Loss of Free Float

The Board wishes to inform shareholders of the company that, as at 5.00 p.m. (Singapore time) on 12 December 2016, the percentage of the total number of shares which are held in public hands is approximately 9.74% (the total number of issued shares being 1,348,266,667 shares) and, accordingly, the company no longer meets the free float requirement prescribed by Rule 723 of the Listing Manual.

Pursuant to Rule 1303(1) of the Listing Manual, in a take-over situation, where the Offeror succeeds in garnering acceptances exceeding 90% of the company’s total number of issued shares (excluding treasury shares), thus causing the percentage of the company’s total number of issued shares (excluding treasury shares) held in public hands to fall below 10%, the Singapore Exchange Securities Trading Limited (“SGX-ST”) will suspend trading of the shares only at the close of the take-over offer.

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Rule 723 :
An issuer must ensure that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) in a class that is listed is at all times held by the public.

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Rule 1303

The Exchange may at any time suspend trading of the listed securities of an issuer in any of the following circumstances:—

(1) If the percentage of an issuer's total number of issued shares excluding treasury shares held in public hands falls below 10%, as provided in Rule 723. In a take-over situation, where the Offeror succeeds in garnering acceptances exceeding 90% of the issuer's total number of issued shares excluding treasury shares, thus causing the percentage of an issuer's total number of issued shares excluding treasury shares held in public hands to fall below 10%, the Exchange will suspend trading of the listed securities of the issuer only at the close of the take-over offer;