Corporate News

Ayala’s IMI to acquire 3 overseas firms for €43M

Posted on May 05, 2011

AYALA-LED chipmaker Integrated Micro-Electronics, Inc. (IMI) has moved to exchange a 12% stake in the company along with cash for a Belgium-based technology firm’s three subsidiaries in Bulgaria, Mexico and the Czech Republic.

IMI’s payoff to EPIQ NV, valued at €43-million total, is said to broaden the Philippine company’s manufacturing base abroad as well as boost its engineering know-how when the transaction is completed “no later than the fourth quarter of 2011,” a statement released yesterday showed.

Before this, AYC Holdings, Ltd. held a 35% stake in IMI followed by Ayala Corp. with a 22% interest, according to data on the company’s Web site.

IMI said the acquisition was conducted through its subsidiary Coöperatief IMI Europe U.A.

It said it was giving cash and 200 million newly issued IMI shares to EPIQ in exchange for the Belgian firm’s three subsidiaries.

IMI shares rose 3.6% to close at P6.63 apiece yesterday.

The EPIQ subsidiaries subject of the transaction generated a combined turnover of €90 million and net income of approximately €4 million in 2010, according to IMI.

“IMI is pursuing this value-enhancing acquisition to expand its customer base and to support its market specialization strategy in the automotive and industrial segments,” Arthur R. Tan, IMI president and chief executive officer, said in the statement.

“As regional manufacturing picks up steam, we are expanding our operations to locations near our global customers in Europe and North America to be of better service to them,” Mr. Tan said.

The acquisition adds to IMI’s portfolio of manufacturing and engineering facilities in the Philippines, Singapore, China, and the United States.

IMI’s net income fell by 56% to $4.470 million in 2010 after swinging to profit in 2009 from the $16.782-million net loss the year previous, its annual report showed.

Revenues in 2010 rose 4.3% to $412.327 million.

Cost of sales similarly crept up by 4.8% to $367.852 million that year.

EPIQ, for its part, retains its manufacturing facility in France.