|By ACN Newswire||
|September 16, 2012 10:47 PM EDT||
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.
About Telefield International (Holdings) Limited
Telefield International (Holdings) Limited is an established international EMS manufacturer offering one-stop solutions to numerous international brand owners of consumer electronic products across Japan, Asia- Pacific, the US and Europe. The Group started to expand its distribution businesses in 2009. Currently, it markets and distributes branded small and medium business phone systems (SMB phone systems) in North America and South America, and assembles and/or markets and distributes multimedia products and computer accessories under "TrekStor" brand in Europe. In 2011, the Group also acquired 51% equity interest of an electronic gaming accessories company, GAEMS, to expand in high potential gaming accessories business. www.telefieldgroup.com.hk
Source: Telefield International (Holdings) Limited
Strategic Financial Relations Limited Vicky Lee +852 2864 4834 firstname.lastname@example.org Cassie Ng +852 2864 4864 email@example.com Carrie Wang +852 2864 4319 firstname.lastname@example.org Fax +852 2527 1196 Website: www.sprg.com.hk
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