Semiconductor Distributor - WPG (TSE:3702) Announces the BOD resolved to acquire AIT (code:6159) 100% share by share swap
2008-09-01
Semiconductor Distributor - WPG (TSE:3702) Announces the BOD resolved to acquire AIT (code:6159) 100% share by share swap
Announcement Date：2008/09/01
Taipei, Taiwan
WPG, already the largest distributor of semiconductor components in Asia, has strengthened its leading position through a share swap acquisition of 100% of Asian Information Technology Inc. (AIT). After acquiring AIT, WPG will be the Asian No.1 component distributor with revenues of NTD 200 billion.
The synergies of consolidation emerged from the establishment of WPG in November 2005. WPG is dedicated to increase 3C application market integration, and expand the market share by area, including China? emerging markets. Based on profit growth and operating asset efficiency improvement, Return on Working Capital (ROWC) and ROE improved respectively from 3.22% and 6.57% in 2005 to 20.8% and 17.3% in the recent year. EPS grew 7x from NT$0.54 to NT$3.7. Operating cash inflow surpassed NTD 6 billion. The acquisition of Pernas, a leading passive component distributor in Taiwan, will have further positive effect in 2H?8.
The Board of Directors of both companies approved a swap ratio of 1:0.46 (AIT: WPG) derived from the two companies?business outlook, complementary product line, EPS, net value per share, and recently unaudited financial statements. Both companies will convene special shareholders?meetings to approve. The effective date for closure is tentatively set for Jan. 1st, 2009.
WPG is ranked the third largest distributor of semiconductor components in the world and this acquisition will immediately enhance the ?ne-stop shopping?capability of WPG customers, and put the company in a stronger position to expand market share going forward.
About WPGWPG? current capitalization is NTD$7.74 billion; 2007 consolidated revenues were NTD$143 billion, pretax incomes were NTD$3.27 billion. WPG has around 3,100 employees. WPG is the largest distributor of semiconductor components in Asia, with sales offices across the region including Hong Kong, China, Singapore, Korea, Malaysia, Thailand, Philippines, India and Australia. WPG is dedicated to an increasingly comprehensive coverage of the semiconductor arena, integrating the 3C market, carrying complete product line, providing high value-added service and e-commerce platform to maximize its economies of scale.
About AITAIT? current capitalization is NTD$2.56 billion; 2007 consolidated revenues were NTD$30.8 billion, pretax incomes were NTD$646 million. AIT has around 740 employees. AIT granted market share from acquisition last few years, with sales offices across the region including Taiwan, Hong Kong, China, Singapore, Korea and Japan.
IR contacts：Cliff Yuan/ Cynthia Lee
Telephone: 886-2-7712-5268 or 886-2-7712-5258
Email address: ir@WPGholdings.comCorporate website: http://www.WPGholdings.com
Announcement Date：2008/09/01
Taipei, Taiwan
WPG, already the largest distributor of semiconductor components in Asia, has strengthened its leading position through a share swap acquisition of 100% of Asian Information Technology Inc. (AIT). After acquiring AIT, WPG will be the Asian No.1 component distributor with revenues of NTD 200 billion.
The synergies of consolidation emerged from the establishment of WPG in November 2005. WPG is dedicated to increase 3C application market integration, and expand the market share by area, including China? emerging markets. Based on profit growth and operating asset efficiency improvement, Return on Working Capital (ROWC) and ROE improved respectively from 3.22% and 6.57% in 2005 to 20.8% and 17.3% in the recent year. EPS grew 7x from NT$0.54 to NT$3.7. Operating cash inflow surpassed NTD 6 billion. The acquisition of Pernas, a leading passive component distributor in Taiwan, will have further positive effect in 2H?8.
The Board of Directors of both companies approved a swap ratio of 1:0.46 (AIT: WPG) derived from the two companies?business outlook, complementary product line, EPS, net value per share, and recently unaudited financial statements. Both companies will convene special shareholders?meetings to approve. The effective date for closure is tentatively set for Jan. 1st, 2009.
WPG is ranked the third largest distributor of semiconductor components in the world and this acquisition will immediately enhance the ?ne-stop shopping?capability of WPG customers, and put the company in a stronger position to expand market share going forward.
About WPGWPG? current capitalization is NTD$7.74 billion; 2007 consolidated revenues were NTD$143 billion, pretax incomes were NTD$3.27 billion. WPG has around 3,100 employees. WPG is the largest distributor of semiconductor components in Asia, with sales offices across the region including Hong Kong, China, Singapore, Korea, Malaysia, Thailand, Philippines, India and Australia. WPG is dedicated to an increasingly comprehensive coverage of the semiconductor arena, integrating the 3C market, carrying complete product line, providing high value-added service and e-commerce platform to maximize its economies of scale.
About AITAIT? current capitalization is NTD$2.56 billion; 2007 consolidated revenues were NTD$30.8 billion, pretax incomes were NTD$646 million. AIT has around 740 employees. AIT granted market share from acquisition last few years, with sales offices across the region including Taiwan, Hong Kong, China, Singapore, Korea and Japan.
IR contacts：Cliff Yuan/ Cynthia Lee
Telephone: 886-2-7712-5268 or 886-2-7712-5258
Email address: ir@WPGholdings.comCorporate website: http://www.WPGholdings.com