The purpose of the Reorganization is for Nam Tai Electronics, Inc. ("NTEI"), the major shareholder of NTEEP, to centralize all electronic manufacturing services ("EMS") business into NTEEP and non-EMS business into J.I.C. Technology Company Limited (HKEx: 987, "JIC"). The result is to turn NTEEP into the flagship listed company of the NTEI Group, and transform NTEEP into a global EMS provider, with an annual revenue of US$867.0 million (HK$6,762.9 million). Based on NTEEP’s 2006 pro forma accounts, NTEEP would become the third largest EMS company listed on the Stock Exchange of Hong Kong in terms of revenue.
After completion of the Reorganization, NTEI will hold 73.18% and 74.99% interests, respectively in NTEEP and JIC. NTEEP will in turn hold 100% interests in Zastron Precision-Tech Limited ("Zastron") and Jetup Electronic (Shenzhen) Co., Ltd. ("Jetup"), a wholly-owned subsidiary of JIC prior to completion. JIC will hold 100% interests in Namtek Japan Company Limited and Shenzhen Namtek Co., Ltd. (collectively "Namtek").
The merger of NTEEP, Zastron and Jetup will give the enlarged NTEEP a broadened and deepened technology base, more diversified products and an expanded industry coverage. In addition, the Reorganization allows NTEEP to acquire not only two profitable businesses, it comes with three pieces of land from Zastron for future expansion in two lower-cost industrial parks with a land site area nearly 4 times the existing site of NTEEP. With a much more sizable operation, reduced overheads and greater economies of scale, NTEEP is more confident in the growth prospects of its business.
On the other hand, JIC will work with Namtek to re-focus business direction on software development in order to power sustainable future growth. In 2007, Namtek has already embarked on research and development on three main areas, namely, 3G sensor application, GPS location tracking device, and navigation, map and POI data compression. By changing its business focus, a decent growth in 2008 and a solid recovery in 2009 are expected for Namtek.
After completion of the Reorganization, NTEI will propose to nominate Mr. Koo Ming Kown and Mr John Quinto Farina (the incumbent Chairman and Chief Financial Officer of NTEI respectively) as NTEEP’s Chairman and Chief Financial Officer respectively. A new group Chief Executive Officer will join NTEI with a key responsibility to strengthen the business of NTEEP. It is believed that the new NTEI CEO, together with the experience and expertise of Mr. Koo and Mr. Farina, would help take NTEEP to a new level.
NTEI proposes to procure NTEEP after completion of the Reorganization to pay a final dividend of a minimum of HK$0.20 (US cents 2.6) per NTEEP share for the year ending December 31, 2007. NTEI will also propose to the NTEEP board to adopt a more liberal dividend policy in the future, including paying dividend twice a year totalling one third of NTEEP’s net profit, subject to the final approval of the NTEEP board and cashflow of NTEEP.
Issued by : Through :
Nam Tai Electronic & Electrical Products Limited
t6.communications limited
Jenny Lee or Angus Ho
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