PUBLICLY-held electronics manufacturing companies supplier Integrated Micro-Electronics, Inc. (IMI) has accomplished the acquisition of a majority stake in a United Kingdom-based firm with a manufacturing unit in Cebu.
IMI, a subsidiary of Ayala Corp., made an preliminary fee of GBP23 million (roughly US$29.7 million) on Tuesday, May 16, for the acquisition of 100,000 odd shares equal to an 80-percent stake in STI Enterprises Limited.
In a disclosure to the Philippine Stock Exchange, IMI stated it can increase into the aerospace, safety and protection markets with the acquisition of STI.
The transaction may even “help strengthen (IMI’s) industrial and automotive manufacturing competencies, broaden its customer base, and provide access to the UK market through two acquired factories.”
STI gives electronics design and manufacturing options in each printed circuit board meeting and full box-build manufacturing for high-reliability industries. It at present operates a manufacturing unit on the Mactan Economic Zone in Lapu-Lapu City, Cebu in addition to two amenities within the UK.
“As part of IMI’s strategic initiatives, the acquisition will enable IMI to expand into the aerospace and defense markets while strengthening the industrial and automotive segments in manufacturing as well as in technology development and engineering,” the corporate stated.
“There are opportunities for improved operations due to increased scale and for supply chain optimization leading to stronger price negotiations,” it added.
Payment can be made in three tranches. After the preliminary fee on the closing of the transaction on Tuesday, two extra funds can be due in 2018 and 2019.
IMI, by means of subsidiary Integrated Micro-Electronics UK Limited, entered into an settlement with STI on April 6 this yr for the acquisition of the 80-percent stake. Closing of the transaction transpired on May 16. (Marites Villamor-Ilano/SunStar Philippines)
Ayala unit acquires electronics agency by: Steve Melvin published: