Metal casing supplier Catcher Technology Co (可成科技) yesterday announced that it would invest NT$1.12 billion (US$38.36 million) to acquire a 7.42 percent stake in flexible printed circuit board (PCB) supplier Career Technology Co (嘉聯益) as part of its vertical integration strategy.
“Catcher and Career are the leading companies in their respective areas. This investment represents the beginning of the two firms’ collaboration in the longer term,” Catcher spokesman James Wu (巫俊毅) said by telephone.
Catcher is to purchase 29.66 million shares at NT$38 apiece of Career’s planned issuance of 76.84 million new common shares, Catcher said in a Taiwan Stock Exchange (TWSE) filing.
The investment would make Catcher the largest shareholder of the flexible PCB supplier, exceeding an aggregate 4.9 percent stake held by Career’s board, company data showed.
Wu declined to comment on whether Catcher plans to secure a seat on Career’s board, saying only that the firm’s focus is to raise its capability in key components integration.
“Mechanical parts and flexible PCB are key components in developing next-generation devices in the electronics industry. We predict growing demand for such components,” Wu said.
Catcher’s capital injection would help Career build a new plant and increase its competitiveness in the industry, he added.
Career is the main flexible PCB antenna supplier to Apple Inc for its iPhones.
Career in January priced its new share issue at NT$40 per share, but lowered it to NT$38 last month to attract investor interest. ‘
The company also postponed the payment deadline from March 2 to Wednesday, Career’s filing said.
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