2012-09-21 | MTI announced the signing of a NTD 1,800 million private placement investment agreement and strategic cooperation agreement with Hon Hai and CyberTAN |
HSINCHU, TAIWAN - September 21 2012 -Microelectronic Technology Inc. (MTI) (2314), Hon Hai Precision Industry Co., Ltd. (Hon Hai) (2317), and CyberTAN Technology Co., Ltd. (CyberTAN)(3062) jointly announced the signing of a NTD 1,800 million private placement investment agreement and strategic cooperation agreement today. Pursuant to the investment agreement CyberTAN and Hon Hai will jointly subscribe a total amount of NTD 1,800 million of mandatory convertible bonds to be issued by MTI, (CyberTAN 1,600 million and Hon Hai for the balance of NTD 200 million). Based on a conversion price per share of NTD 9, approximately 200 million shares of common stock will be converted, accounting for 32.62% of MTI's share capital.
Mr. Terry Gou, Chairman of Hon Hai Group, is quoted as saying, MTI is a well-established company in Taiwan specialized in microwave and satellite communications technology with 30 years of industry experiences. Hon Hai Group values MTI's R & D capabilities and industry expertise, hence decides together with its affiliated company CyberTAN, to invest in MTI. In the future, Hon Hai expects all three parties can, leveraged on their own technology expertise and competitive strength, collaborate closely in the areas of technology research, manufacturing and customer development to explore the huge business opportunities brought by the next-generation of the global 4G communication technology and the demand for satellite communications.
Mr. Gwong-Yih Lee, Chairman of CyberTAN, expressed CyberTAN and MTI are specialized in their own areas in the network and communication industry, and can supplement each other well in product technology and support each other in the product platform and customer base in the future. Post investment in MTI, CyberTAN and MTI will work closely in the areas of technology, product, marketing and customer base, to strengthen the competitiveness of both sides, to get the best competitive advantage in the broadband and wireless communications. Cooperating with MTI, CyberTAN can enrich its set-top box product line, enhance Outdoor WiFi AP technical cooperation and strengthen 4G/LTE product composition.
MTI Chairman Patrick Wang said, in order to enhance MTI's working capital and strengthen the company's financial structure, we invited CyberTAN and Hon Hai to join MTI as our strategic partners. Based on our strength in research & development and customer resources in microwave and satellite communications, MTI will be benefiting from Hon Hai's excellent manufacturing capabilities and its dominant buying power, which will help us further improve our manufacturing efficiency and our cost structure. We expect to enlarge our business scale, improve operating performance, and increase our shareholders' value.
MTI plans to hold an interim shareholders' meeting after the deal closing, to discuss and approve a capital reduction plan to offset company accumulated losses, and to elect two directors, one independent director and one supervisor, according to Articles of Incorporation amended by 2012 annual shareholders' meeting.
About MTI
Microelectronics Technology Inc. (MTI) is a technology
company specialized in wireless communication product
development, manufacturing and global sales for more than 29
years. Based on the core competence in microwave and RF
technology, MTI has established a leading position in the
fields of microwave radios, satellite ODUs and receivers,
mobile base station components and broadband wireless access
products. With this excellent record of accomplishment,
MTI has established long-term partnerships with world's
leading communication equipment providers.
For more information, please visit http://www.mtigroup.com
About Hon Hai Precision Industry Co., Ltd.
Hon Hai Precision Industry Co., Ltd.(Hon Hai) is the most
valued professional electronics manufacturing company
in the world, providing customers world's most
competitive one-stop shopping solution ("eCMMS"
business model, )from Joint DeSign Manufacturing (JDSM),
Joint DeVelopment Manufacturing(JDVM), global operation
to after-sales services. High-tech customers of Hon Hai
including computer, communication, consumer electronic,
digital content, auto parts, and logistics. Hon Hai
Group's strategic partners and customers are entitled to
the global optimum speed, quality, engineering services,
efficiency and added value such as "Comprehensive cost
advantages".
For more information, please visit http://www.foxconn.com.tw/index.htm
About CyberTAN Technology Inc.
CyberTAN Technology, Inc. is a leading manufacturer of
broadband and wireless networking equipment. Since its
founding in June 1998, CyberTAN has energetically invested in
R&D resources to provide professional OEM/ODM services for
the home networking and communications market. CyberTAN is
headquartered in Taiwan's Hsinchu Science Park and has
R&D, sales, and customer service centers in Taipei, China,
and the U.S.A. CyberTAN posted sales of US$457 million in
2011 and currently employs more than 2300 people
worldwide.
For more information, please visit http://www.cybertan.com.tw/index.htm
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