Product category: Electronics Manufacturing Services
News Release from: Integrated Microelectronics
Edited by the Electronicstalk Editorial Team on 20 October 2005
Shareholders approve eastern EMS merger
The shareholders of Speedy-Tech Electronics, a Singapore-based EMS and power electronics company, have approved the company's merger with Integrated Microelectronics
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(IMI). IMI is a privately held subsidiary of Philippine conglomerate Ayala Corporation with manufacturing facilities in Laguna and Cebu, Philippines as well as engineering and design centres in Tustin, California and Alabang, Philippines. Speedy-Tech is publicly listed on the Singapore Stock Exchange with five production facilities - three in China (two in Shenzhen and one in Jiaxing), one in Singapore, and one in Cavite, Philippines.
The merger represents a significant step towards creating a strong mid-sized EMS player in the Asia-Pacific region with estimated pro-forma revenues in excess of US $260 million for 2004.
It enables both companies to leverage on each other's strengths in their respective markets and gain access to a broader and more diversified customer base.
The increased scale of operations will better position the merged entity to secure larger and more attractive outsourcing contracts from both existing and prospective customers.
Further reading
Filipino companies come together on global stage
Integrated Microelectronics has established a strategic partnership with semiconductor assembly company PSi Technologies
Alliance targets Japanese EMS expansion
Integrated Microelectronics has established a strategic partnership with Japanese EMS company Pulax Corporation
Pursuant to the merger, Speedy-Tech shareholders will receive either 1.3249 IMI shares or approximately US $0.317 in cash for every one Speedy-Tech share.
Subject to final approval by the High Court of Singapore, the merger is expected to be completed in December 2005.
On completion, Speedy-Tech will become a wholly owned subsidiary of IMI and its shares will be delisted from the Singapore Stock Exchange.
Arthur R Tan, President and CEO of IMI, stated: 'We are delighted that our respective shareholders have shown an alignment of our strategic interests, bringing us closer to the completion of this merger'.
'We look forward to creating a strong global entity that is able to provide customers with a fully integrated range of solutions for their product development, engineering, and manufacturing needs'.
'We expect this to greatly strengthen our competitive position in a rapidly consolidating industry and to yield significant benefits for both our customers and shareholders'.
Tan Keng Boon, Chairman of Speedy-Tech, said: 'We are pleased that our shareholders share our vision in bringing our business to a new level through this merger'.
'There is a strong strategic fit between Speedy-Tech and IMI and the merger will create a compelling manufacturing partner for our customers'.
Benjamin Chng, Managing Director of Speedy-Tech, added: 'We are indeed delighted to have gained the support of our shareholders'.
'We will draw on IMI's experience and resources to further enhance the efficiency of our existing manufacturing facilities while IMI will gain access to the important China market, in which we already have a presence'.
Based on the latest 2004 audited financial results of Speedy-Tech and IMI, the merged entity would have a combined revenue of approximately US $265 million and profit after tax and minority interests of about US $30 million.
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