VANCOUVER, British Columbia, April 15 /PRNewswire-FirstCall/ -- Nam Tai
Electronics, Inc. ("Nam Tai" or the "Company") (NYSE: NTE; CBOE: QNA;
Frankfurt Stock Exchange: 884852) today announced that its subsidiary Nam Tai
Electronic & Electrical Products Limited ("NTEEP") has applied for the listing
of its shares on the Main Board of The Hong Kong Stock Exchange ("HKSE"). Nam
Tai will be offering 200 million existing shares of NTEEP by way of a global
offering which comprises a public offering in Hong Kong and an international
placing.
NTEEP is a wholly-owned subsidiary of Nam Tai. It is a well-established
vertically-integrated manufacturing solutions provider for some of the world's
reputable leading brand owners of consumer electronics and communications
products. Its largest customers include Sony Ericsson, Texas Instruments,
Sony Computer Entertainment, Seiko Instruments, OmniVision, Appeal Telecom and
Canon (C.E.B.M.). NTEEP offers customers services ranging from design and
development, industrialization and qualification, volume-manufacturing,
quality control to supply chain management. NTEEP currently focuses on four
segments of the consumer electronics and communications sectors, include;
-- Optical devices such as CMOS image sensor modules;
-- Home entertainment devices such as the EyeToy(R) USB camera accessory
and USB microphone and converter box for Sony Computer Entertainment's
PlayStation(R)2;
-- Mobile phone accessories such as Bluetooth(TM) headsets, snap-on
digital cameras and snap-on flash lights; and
-- Educational products such as calculators and electronic dictionaries.
NTEEP has achieved excellent results with its gross profit accounting for
over 40% of the total gross profit of Nam Tai in the past three years.
Nam Tai will offer for sale 200 million existing shares of NTEEP (subject
to the over-allotment option), representing approximately 25% of the issued
shares of NTEEP, by way of a global offering, in which (subject to adjustment)
180 million shares are offered by way of international placing, and 20 million
shares are offered by way of a public offer in Hong Kong. The offer price per
share will be not more than $0.538(HK$4.20) and is expected to be not less
than $0.455(HK$3.55). The expected listing day of NTEEP on HKSE is 28 April
2004.
Mr. Tadao Murakami, Nam Tai's Chairman, said, "I am pleased to see the IPO
of NTEEP, it is our many years' efforts that make it realized. Over the years,
we have trained up a group of seasoned second generation management. I am
glad to see our first spin off and look forward to seeing other fruitful
results under their own management in the near future. I would like to
express my special appreciation to Ms. Karene Wong, the Chairman of NTEEP, who
helps NTEEP building up and securing couples of well known customers. With
her efforts since 1989, NTEEP has built a strong relationship with Texas
Instruments, Sony Ericsson and many other top international consumer
electronic brands."
Ms. Wong added, "I am excited that Nam Tai is always confident in me. It
is Nam Tai's culture that creates the warmest atmosphere for us to realize the
corporate vision. Looking into the future, we seek to diversify our product
types and to actively explore opportunities in different electronic sectors
such as developing GPS and CMOS image sensor modules for car parking system.
It is our objective to devote every effort on creating profit for NTEEP,
rewarding our shareholders by favourable returns."
Mr. Murakami continued, "The IPO of NTEEP represents a new milestone of
Nam Tai. In the past, some of the Asian funds are very interested in Nam Tai
but not able to invest in Nam Tai's shares because of their fund mandate to
only invest in Asian markets. The IPO of NTEEP, a major subsidiary of Nam Tai,
gives an opportunity to those funds to invest in a Nam Tai company.
Furthermore, with the IPO of NTEEP, the profile of Nam Tai and NTEEP will
further be raised in Hong Kong and the Asian region, which helps attracting
customers and developing businesses.
"So, since the operation of NTEEP is generating a strong cash flow, has a
total shareholders' equity of approximately $85 million as at the date of
listing and negligible bank borrowings, NTEEP should have sufficient funds for
its future business development, no new shares are therefore issued in the IPO
of NTEEP. The shareholders of Nam Tai are final beneficiaries as no dilution
will occur, and the IPO of NTEEP is also in their best interest by creating
business opportunities and also bringing a proceed as extraordinary income
ranging from approximately $91 million to $108 million to Nam Tai. The IPO of
NTEEP will therefore create a gain for Nam Tai in short term. This
significant gain further strengthens our financial position. It enables us to
expand our business to support our future growth and to grasp any appropriate
investment opportunities to benefit our shareholders in long term, without
having to raise fund by way of offering and thus diluting the existing
shareholders' interest."
Mr. Murakami concluded, "Whilst NTEEP will become a listed company in HKSE,
Nam Tai remains in control of NTEEP and will have a shareholding of 75% in
NTEEP after the IPO (assuming that the over-allotment option is not exercised).
All in all, we believe the IPO of NTEEP is for the best interest of Nam Tai,
its shareholders and employees of NTEEP, and can strengthen Nam Tai's leading
position in the consumer electronic market."
Listing details at a glance
NTEEP's Iisting on the MAIN Board of The Stock Exchange of Hong Kong
Limited
Global Coordinator, Bookrunner, The Hongkong and Shanghai Banking
Lead Manager & Sponsor Corporation Limited (HSBC)
Global Offering - no. of shares- (subject to adjustment and the over-
allotment option)
International Placing 180,000,000 shares (90% of
total offer)
Public Offer 20,000,000 shares (10% of
total offer)
Offer Price $0.455(HK$3.55) - $0.538(HK$4.20)
International Placing Commence 12 April 2004(Hong Kong)
Public Offer Commence 16 April 2004(Hong Kong)
Public Offer Deadline 21 April 2004(Hong Kong)
Listing Date 28 April 2004(Hong Kong)
Stock Code 2633
About Nam Tai
We are an electronics manufacturing and design services provider to
original equipment manufacturers of telecommunications and consumer electronic
products. Through our electronics manufacturing services operations, we
manufacture electronic components and subassemblies, including LCD panels, LCD
modules, radio frequency modules, flexible printed circuit subassemblies and
image sensors. These components are used in numerous electronic products,
including cellular phones, laptop computers, digital cameras, copiers, fax
machines, electronic toys, handheld video game devices and microwave ovens. We
also manufacture finished products, including cellular phones, palm-sized PCs,
personal digital assistants, electronic dictionaries, calculators and digital
camera accessories for use with cellular phones.
Safe Harbor
Certain statements in this press release are "forward-looking statements"
within the meaning of U.S. federal securities laws. Nam Tai intends that these
statements be covered by the safe harbors created under these laws. These
forward-looking statements are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from future
results expressed or implied by the forward-looking statements. Many of these
factors are beyond Nam Tai's ability to control or predict. Given these
uncertainties, readers are cautioned not to place undue reliance on the
forward-looking statements, which only speak as of the date of this press
release. Nam Tai does not undertake any obligation to release publicly any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect the
occurrence of unanticipated events, except as may be required under applicable
securities laws.
SOURCE Nam Tai Electronics, Inc.
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Related links:
http://www.namtai.com
CONTACT:
Lorne Waldman, President of Pan Pacific I.R.
Ltd., +1-604-669-7800, +1-800-661-8831, for Nam Tai Electronics,
Inc.
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