Hong Kong-based electronics injection molder Plastec International Holdings Ltd. will go public on a U.S. stock exchange following a $73.4 million deal with a Cayman Islands-based holding company.
Plastec was founded in 1993 and conducts business under the name Sun Line Industrial Ltd. It employs 4,600 at five facilities with a total of 1.7 million square feet of manufacturing space in Guangdong and Jiangsu provinces. Its product lines consist of plastic casings and components for consumer electronics, home appliances, telecommunication devices, and children s educational products.
The company is being acquired by GSME Acquisition Partners I, a Cayman Islands corporation that is listed on the Nasdaq OTC Bulletin Board.
GSME will buy 100 percent of Plastec in exchange for 7.3 million newly issued ordinary shares, representing a total transaction value of about $73.4 million, based on an agreed upon share price of $10.The deal is subject to closing conditions and approval by GSME shareholders, and is scheduled to close in October.
Plastec estimated that its total sales for the 12-month period that ended April 30 increased 5.8 percent to $123.9 million; its adjusted net profit was $11.3 million and earnings before interest, taxes, depreciation and ortization was $27.6 million.Plastec believes the $75 million investment it made in machinery,tooling, and general expansion during fiscal years 2008 2010 prepared the company for a turnaround in the global plastic components sector.
In a news release, Plastec Chairman and CEO Kin Sun Sze-To said: This merger and subsequent U.S. national securities exchange listing will increase our flexibility and access to capital while also increasing our visibility within our industry. Plastec plans to use capital from the GSME deal to pursue acquisitions of China-based molding companies. We feel there are numerous avenues for potential growth, including expansion into new industries such as auto and industrial applications, either organically or through complementary
acquisitions, Kin said. Following the deal, Plastec s current shareholders, including managers, individual investors, and U.S.-based private equity firm
Cathay Capital, will own approximately 66 percent of the total issued and outstanding shares in GSME on a fully diluted basis.Plastec s senior management team will remain unchanged and will become the senior management of GSME.GSME s board of directors will be comprised of three executive directors and two non-executive directors appointed by Plastec, one director appointed by Cathay Capital, and one director appointed by GSME Eli Scher, GSME s CEO.Scher said in the release that the deal with Plastec represents a favorable [price-to-earnings] multiple and offers the potential for substantial appreciation.
Plastec was founded in 1993 and conducts business under the name Sun Line Industrial Ltd. It employs 4,600 at five facilities with a total of 1.7 million square feet of manufacturing space in Guangdong and Jiangsu provinces. Its product lines consist of plastic casings and components for consumer electronics, home appliances, telecommunication devices, and children s educational products.
The company is being acquired by GSME Acquisition Partners I, a Cayman Islands corporation that is listed on the Nasdaq OTC Bulletin Board.
GSME will buy 100 percent of Plastec in exchange for 7.3 million newly issued ordinary shares, representing a total transaction value of about $73.4 million, based on an agreed upon share price of $10.The deal is subject to closing conditions and approval by GSME shareholders, and is scheduled to close in October.
Plastec estimated that its total sales for the 12-month period that ended April 30 increased 5.8 percent to $123.9 million; its adjusted net profit was $11.3 million and earnings before interest, taxes, depreciation and ortization was $27.6 million.Plastec believes the $75 million investment it made in machinery,tooling, and general expansion during fiscal years 2008 2010 prepared the company for a turnaround in the global plastic components sector.
In a news release, Plastec Chairman and CEO Kin Sun Sze-To said: This merger and subsequent U.S. national securities exchange listing will increase our flexibility and access to capital while also increasing our visibility within our industry. Plastec plans to use capital from the GSME deal to pursue acquisitions of China-based molding companies. We feel there are numerous avenues for potential growth, including expansion into new industries such as auto and industrial applications, either organically or through complementary
acquisitions, Kin said. Following the deal, Plastec s current shareholders, including managers, individual investors, and U.S.-based private equity firm
Cathay Capital, will own approximately 66 percent of the total issued and outstanding shares in GSME on a fully diluted basis.Plastec s senior management team will remain unchanged and will become the senior management of GSME.GSME s board of directors will be comprised of three executive directors and two non-executive directors appointed by Plastec, one director appointed by Cathay Capital, and one director appointed by GSME Eli Scher, GSME s CEO.Scher said in the release that the deal with Plastec represents a favorable [price-to-earnings] multiple and offers the potential for substantial appreciation.
