Product category:
Electronics Manufacturing Services
News Release from: Integrated Microelectronics
Edited by the Electronicstalk Editorial
Team on 14 June 2005
Asian EMS companies come together
Philippines-based Integrated Microelectronics has entered into a conditional merger agreement with Speedy-Tech Electronics, an EMS company based in Singapore.
Philippines-based Integrated Microelectronics (IMI) has entered into a conditional merger agreement with Speedy-Tech Electronics (STEL), an EMS company based in Singapore IMI is a privately held subsidiary of Ayala Corp with manufacturing facilities in Laguna and Cebu, Philippines as well as engineering and design centres in Tustin, California and Alabang, Philippines
This article was originally published on Electronicstalk on 8 Nov 2004 at 8.00am (UK)
Related stories
EMS solutions to be introduced in Munich
IMI or Integrated Microelectronics will showcase its complete solutions in electronica 2004 Trade Show from 09 to 12 November in New Munich Trade Fair Centre in Germany.
Power semiconductor materials focus of trade show
At the 37th International Symposium on Microelectronics November 16-18, 2004, Indiumıs exhibit will focus on Power Semiconductor Materials, such as Solder Wire, Solder Preforms and Solder Paste.
STEL is publicly listed on the Singapore stock exchange and maintains five production facilities - three in China (two in Shenzhen and one in Jiaxing), one in Singapore and one in Cavite, Philippines.
Under the terms of the proposed merger scheme, IMI will acquire all of the 376.2 million outstanding shares of STEL for a total consideration of approximately SG $201 million.
The merger is to be effected by way of a "scheme of arrangement" under the Companies Act of Singapore and will allow STEL shareholders to accept cash, new IMI shares, or a combination of the two.
Further reading
Funds enable transition to copper interconnects
The Scottish microelectronics industry's leading-edge IC 'microsurgery unit' has received funds to enable it to introduce state of the art techniques that will make the facility unique in Europe.
Fisher steps up to group role
TT Electronics has appointed Dean Fisher as Business Development Director for its automotive sensors and systems division with immediate effect.
On completion of the transaction, which will be subject to the required shareholder and regulatory approvals, STEL will become a wholly owned subsidiary of IMI and will be delisted from the Singapore stock exchange.
The merger is expected to create significant value for both sides in three main areas.
First, the combined entity will benefit from increased scale as cost advantages are achieved through the integration of operational functions and the consolidation of material purchasing power.
Secondly, the combined entity will have a broader geographic presence, with IMI gaining a foothold in the important China market and STEL benefiting from IMI's experience and engineering resources in the Philippines and in the USA.
Finally, the merged group will have a stronger and more diversified customer base in the computer peripheral, telecommunications, medical, automotive, industrial, and power electronics segments, especially as there is minimal customer overlap between the IMI and STEL business.
Arthur R Tan, President and CEO of IMI, stated: "We are very excited about this merger with Speedy-Tech".
"Our goal is to become a strong tier-two global EMS player and expanding both our product competencies and geographical footprint is critical to our success".
"We felt that it was especially important to have a China presence in order to provide our customers with a broader range of customised solutions for their engineering and manufacturing needs".
"This merger will enhance our global competitiveness tremendously and we are confident that it will create significant long-term value for our shareholders moving forward".
The merger is expected to be completed in the fourth quarter of 2005.
IMI is being advised by Macquarie Securities (Asia).
• Integrated Microelectronics: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
