Thu, Nov 23, 2006 - Page 12 News List

Jabil Circuit makes bid for Green Point valued at NT$30 bn

IN THE PIPELINE The sale has to be approved at a shareholders' meeting early next year and should be completed moving into the second quarter

By Jason Tan  /  STAFF REPORTER

Green Point Enterprises Co (綠點高新科技), which makes handsets, injection molds and plastic parts, yesterday said it had agreed to a takeover bid by Jabil Circuit Inc, a US electronics manufacturing service (EMS) provider.

Jabil, the world's No. 6 EMS firm which makes Nokia Oyj handsets, has agreed to offer NT$109 (US$3.32) for Green Point shares. The acquisition will see nearly NT$30 billion (US$0.91 billion) change hands, a Green Point official told a press briefing yesterday.

"The move will complement each side in terms of clientele and technology," said Green Point's general manager Chiang Huai-hai (江懷海).

The acquisition offer of NT$109 per share is 3.81 percent more than Green Point's closing price of NT$105 on the Taiwan Stock Exchange yesterday.

Chiang said it was a perfect match for both firms as Taichung-based Green Point does not have an assembly capability and Jabil, based in St. Petersburg, Florida, lacks a component manufacturing segment.

The buyout is pending shareholders' approval early next year and is expected to be completed in the second quarter. Under the terms of the acquisition, Green Point will no longer be listed on the local stock exchange and will cease to operate as a distinct business entity.

Both firms started business interactions a year and a half ago, and Jabil agreed to buy Green Point to expand its market share and cut costs, Chiang said.

Green Point was also approached by two other leading EMS firms -- Hon Hai Precision Industry Co (鴻海精密) and Flextronics International Ltd -- for buyout opportunities but negotiations were unsuccessful, the Chinese-language Commercial Times reported on Nov. 8.

Foxconn International Holdings (富士康控股), a handset maker under Hon Hai group, has been gearing up to enhance its component and integration capabilities. The Green Point deal has placed more pressure on Hon Hai to upgrade its manufacturing processes, the paper said.

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