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| Strengthens High-end Communication Products Distribution Business |
HONG KONG, Sept 17, 2012 - (ACN Newswire) - Telefield International (Holdings) Limited ("Telefield," or the "Group;" stock code: 01143), a Hong Kong-based Electronic Manufacturing Services (EMS) manufacturer with growing distribution businesses, announced that it has entered into the Subscription Agreement (the "Agreement") with Fargo Telecom Holdings Limited ("Fargo Telecom"), Fargo Services (H.K.) Limited ("Fargo Services") and Unipoint Development Limited ("Unipoint") to acquire 53% of the enlarged issued share capital of Fargo Telecom at a consideration of HK$15 million in cash. Telefield also agrees to purchase up to 42.3% of the enlarged share capital of Fargo Telecom in stages after Completion, subject to a cap of HK$20 million.
Mr. Cheng Han Ngok, Steve, Chairman of Telefield, said, "This agreement offers a unique opportunity to accelerate the growth of our distribution businesses through an acquisition strategy. We believe the acquisition will bring us additional technical expertise and business opportunities in developing high-end niche communication products and broadening our product range. Fargo Telecom's business complements the Group's existing businesses and enables the Group to tap the markets of the PRC, India, Russia, Brazil and other countries."
Fargo Telecom, through its subsidiaries, is a distributor of a wide range of wireless technology products, a global provider of end-to-end wireless connectivity solutions and an one-stop solution provider for the development of wireless devices. Its business includes the distribution of 2G, 3G, RF, GPS, and Wi-Fi modules in China, and India, the manufacturing and sales of wireless modem and gateways, as well as system integration, custom design of modem devices, embedded and back software development and mechanical design.
Mr. Cheng concluded, "We are optimistic about the prospects of the market and believe the acquisition will provide a solid ground for the Group's investment. We also believe that it will enlarge our business scope, broaden our revenue stream and bring a positive contribution to the Group's overall earnings in the future."
OSK Capital Hong Kong Limited and SODICA Asia Limited acted as financial advisors for the purpose of this transaction.
Contact:
Strategic Financial Relations Limited
Vicky Lee +852 2864 4834 vicky.lee@sprg.com.hk
Cassie Ng +852 2864 4864 cassie.ng@sprg.com.hk
Carrie Wang +852 2864 4319 carrie.wang@sprg.com.hk
Fax +852 2527 1196
Website: www.sprg.com.hk
Topic: Press release summary
Source: Telefield International (Holdings) Limited
Sectors: Daily Finance, IT Individual, Wireless, Apps, Daily News
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