Zhen Ding Technology Holding Limited Mergers Boardtek Electronics By Share-Swap.
Zhen Ding Technology Holding Limited (4958, Zhen Ding) considered the future strategy and need to improve operational performance and industrial competitiveness. The board of directors passed a share-swap with Boardtek Electronics (5349, Boardtek) motion, today (Mach 10, 2020).
Zhen Ding will acquire all of issued shares of Boardtek by issuing new shares. After the share-swap Boardtek will become a 100%-owned subsidiary of Zhen Ding.
Based on recent market prices and the financial information of Zhen Ding and Boardtek, after consultation with external independent experts the board of directors determined the exchange ratio of the share-swap is 1 share of Zhen Ding to 5 share of Boardtek. Zhen Ding expected issue 44,819 thousand new shares to shareholders of Boardtek.
After the approval of the authority and Boardtek shareholders meeting, the share-swap record date is set for 2020/11/11. When the share-swap is completed Boardtek will become a 100%-owned subsidiary of Zhen Ding and Boardtek will be revoked in public market subsequently.
Boardtek engages in R&D, production and sales printed circuit boards(PCB) for automotive and communication service.
Zhen Ding through the acquisition accesses automotive and high-frequency communication PCB markets by the integration of supply chains, customers, and technology resource.
As the leader of PCB industry, Zhen Ding has been evaluating various opportunities to strengthen the product portfolio with one-step shopping (One ZDT) strategy, and create complete solutions for customers.
This acquisition enhances Zhen Ding in the cooperation with teir-1 class automotive, high computing server and communication customers closely then raises shareholders' equity value, which will bring positive benefits to existing customers, employees and shareholders of both parties.