|By Business Wire||
|September 19, 2012 03:10 AM EDT||
Telefield International (Holdings) Limited (“Telefield,” or the “Group,” stock code: 01143), a Hong Kong-based Electronic Manufacturing Services (EMS) provider with growing distribution businesses, announces that it has entered into a Subscription Agreement with Fargo Telecom Holdings Limited (“Fargo Telecom”) 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 subsequent stages, subject to a cap of HK$20 million.
Fargo Telecom, through its different subsidiaries Maestro Wireless Solutions, Smart Gears and Fargo Telecom Asia, designs, manufactures and sells GPS receivers and machine-to-machine (“M2M”) modems and gateways; it also offers solutions and one-stop engineering services. The investment by Telefield will strengthen Fargo Telecom and enhance its abilities to develop solutions for the M2M market.
“We are optimistic about the prospects of the telecommunications market and believe the acquisition will provide a solid ground for the Group’s investment," said Cheng Han Ngok, Steve, Chairman of Telefield. “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, in particular, South Africa, China, India, Russia and Brazil.”
"This is a natural step in the company’s development,” added Xavier Dupont, Managing Director of Fargo Telecom. “The M2M market is consolidating and we see Telefield’s investment as an endorsement of our strategy. The combination of Telefield’s resources with Smart Gears’ engineering expertise and Maestro Wireless Solutions’ world-wide commercial reach will lead to increased efficiencies in product development and faster time-to-market for innovative M2M products and solutions.”
About Telefield International (Holdings) Limited
Telefield International (Holdings) Limited is an established international EMS provider 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 the “TrekStor” brand in Europe. In November 2011, the Group acquired 51% equity interest of an electronic gaming accessories company, GAEMS, to expand in high potential gaming accessories business.
About Fargo Telecom Holdings Limited:
Fargo Telecom, through its subsidiaries, is a distributor of a wide range of wireless technologies, a global provider of end-to-end wireless connectivity solutions and a one-stop service provider for the development of wireless device. Its business includes the distribution of 2G, 3G, RF and Wi-Fi modules through its subsidiary Fargo Telecom Asia in China, India and Vietnam, the manufacture and sale of GPS receivers and wireless modem and multi-mode gateways through Maestro Wireless Solutions, as well as system integration, custom design and development of devices, embedded and back-end software through Smart Gears.