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[April 2006]
Yageo Corp to Invest in Chipcera
Yageo Corporation has announced that its board of directors has approved an acquisition of 69% of Chipcera Technology Co Ltd's total issued shares. The acquisition will be consummated by a stock swap of one Chipcera's share in exchange for 0.661 Yageo share. The swap, scheduled to take effect on 1 July 2006, will bring Chipcera's holding in Yageo to around 0.68% of Yageo's capital after the acquisition. The strategic alliance represents Yageo's continued efforts to strengthen its core competence focusing on core business and a step further towards a global leader position in passive component services industry.
Chipcera Technology is a professional high-voltage MLCC manufacturer established in December 2000. The acquisition will boost Yageo's world presence in high-voltage MLCC from 9% to 12% and will position the company for further market share expansion to 15% by the end of 2006 given the growing demand for high-voltage MLCC propelled by the strong TFT-LCD monitor, LCD TV, Notebook, power supply and lighting sectors. In addition to high-voltage MLCC, Chipcera provides high frequency capacitor and C-arrays with production facilities in Kaohsiung, Taiwan and Dongguan, Mainland China.
Yageo looks forward to benefit, in terms of both the top and bottom lines, from the synergies in enhanced product mix of high-voltage MLCC and C-arrays, enlarged scale economy and integrated technological research resources brought by the strategic alliance with Chipcera. With the synergies of the acquisition, it's expected to contribute to an addition of NT$180 million yearly earnings to Yageo.
Yageo said that the acquisition was in line with its commitment to further strengthening technological lead in high-end (high-voltage MLCC, high-cap MLCC and thin film resistor), miniaturisation (0201 and 0402 resistor and
MLCC) and high frequency antennas products in order to step up its presence in PCs, consumer electronics, LCD TV, handsets and WLAN markets.www.yageo.com
ENDS