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- Release Date: 13/08/13 10:24
- Summary: ASSET: RAK: Rakon Announcement On Agreements Signed With ECEC
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RAK
13/08/2013 08:24
ASSET
REL: 0824 HRS Rakon Limited
ASSET: RAK: Rakon Announcement On Agreements Signed With ECEC
13 August 2013
RAKON SIGNS EQUITY TRANSFER AGREEMENT FOR SALE IN
RAKON CRYSTAL (CHENGDU) CO. LIMITED
Following Rakon Limited's (NZX:RAK) announcement on 5 July 2013 that it has
signed a Cooperation Framework Agreement with ZheJiang East Crystal
Electronic Co. Ltd. (ECEC), both parties have signed formal Agreements
(Equity Transfer Agreement; Joint Venture Contract) for ECEC to acquire from
Rakon 80% of the shares in Rakon Crystal (Chengdu) Co. Limited (RCC), the
owner of the manufacturing facility in Chengdu, China for US$18.8 million.
Rakon and ECEC are to establish a strategic partnership targeting the smart
wireless device (SWD) market, with both parties working together in the areas
of technology, capital, management and markets for SWD, by sharing resources
and capabilities. ECEC will further fund the expansion of the Chengdu plant
from its current 20% capacity utilisation, to enable the joint venture to
achieve greater scale. The acquisition will result in a new joint venture of
RCC with Rakon holding 5.4% and existing joint venture partners continuing to
own 14.6%.
The Equity Transfer Agreement contains certain conditions to be met before
the expected completion and settlement on 30 September 2013. One of those
conditions is for Rakon to gain shareholders' approval for the transaction. A
Special Shareholders Meeting is to be convened for this purpose, to be held
immediately following the Annual Shareholders Meeting on 6 September 2013.
For further information:
Brent Robinson
Managing Director
Rakon Limited
(09) 571 9323
About Rakon:
Rakon is a global high technology company that designs and manufactures world
leading frequency control solutions. Rakon's products enable fast and
reliable connectivity in the transfer of data. Customers are manufacturers in
the avionics, space, military and telecommunications industries.
About ECEC:
ZHEJIANG EAST CRYSTAL ELECTRONIC CO., LTD. is primarily engaged in the
research, development, design, manufacture and distribution of electronic
components. The Company primarily provides surface mount device (SMD) quartz
crystal resonators, oscillators and ceramic tubular capacitors, among others.
The Company's products are mainly used in communication field, information
field, home appliance field, automobile electronic product field and other
fields. The Company distributes its products in domestic and overseas
markets.
End CA:00239560 For:RAK Type:ASSET Time:2013-08-13 08:24:01
