Balda AG / Key word(s): Joint Venture/Joint Venture
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Bad Oeynhausen – Balda AG acquires via Balda Investments Singa-pore (BIS) a
50 per cent stake in the TPK Holding (TPK). TPK pro-duces Touch-Screen
solutions. The production sites of TPK are lo-cated in Xiamen in China and
development takes place in the devel-opment centre in Taiwan. The family of
Michael Chiang, the CEO Asia of Balda AG, will be the Joint-Venture
In a first step the Chiang family acquires 15 per cent of the shares of
BIS. The purchase price was agreed with 11 million Euros.
As a countermove BIS will acquire 50 per cent of the shares of TPK. With it
the Chiang family will get another 25 per cent of the BIS shares via a
share swap (contribution in kind). Additionally BIS pays 59.25 million
Euros in the frame of these transactions, whereof 40 million Euros will
flow into TPK as a capital injection.
Balda expects for 2007 proportionate revenues of 300 to 350 million Euros
from the participation in TPK, which was founded in 2005 and whose
production volumes will strongly increase at the beginning of the fourth
quarter. The proportionate profit out of this will reach 30 to 35 million
On top of it, with these new technologies far reaching synergies and
revenue potentials come up for the Balda group in the core market Infocom
as well as in new markets.
To finance this acquisition and the further growth Balda issues an op-tion
bond of 80 million Euros as a private placement. The bond covers conversion
rights for 4 million shares. The conversion price amounts to 9.85 Euros,
while the interest rate lies at 4.95 per cent with a term of 5 years.
With this acquisition Balda follows its defined strategy to strengthen the
existing plastics business and to increase the value added with investing
in new technologies, thus better penetrating the core market of Infocom and
reaching new markets.
Considering the figures received so far Balda assumes that the sec-ond
quarter fell behind the budget in revenues as well as in earnings. Based on
the actual forecasts Balda still confirms the communicated target of
revenues of 450 to 460 million Euros with a pre-tax profit (EBT) of 46 to
48 million Euros.
Information and Explaination of the Issuer to this News:
Balda AG is one of the leading system suppliers of high performance plastic
components for the mobile-phone industry. In addition to pro-duction its
portfolio of services includes development and production of tools, surface
finishing and components assembly.
The TPK Holding was founded in 2005. The group with its touch-screen
production concentrates on displays with a size of 2 to 8 inch. These are
used particularly in the area of handheld devices, PDA’s and mobile phones.
TPK nevertheless is able to produce touch dis-plays up to a size of 42
Central point of the production is the manufacturing of so called ‘touch
panels’, using different self developed or further developed processes. In
the next production step these panels, which contain the touch sen-sitivity
to control the devices, are connected to the LCD-displays. If required by
the customer the completed displays are further assem-bled, e.g. to
housings produced by Balda.
The customers of TPK come from the markets for Personal Portable Devices,
Public Information Systems, Telecom Systems, Office Auto-mation Systems and
The founder family of TPK has up to 30 years of experience in the
development and production of high-value electronic components, especially
of monitors for the computer industry.
If you have any questions, please contact us: Invitation to our phone
conference at 11:00 a.m. local German time. The power point charts will be
available directly on our website. Please call in at least 10 min-utes
before the conference begins: +49(0)69/9897 2633. Balda AG, Cersten
Hellmich and Kathrin Wiederrich (Investor Relations), Phone: +49 (0) 5734
922-2706 / 2751, E-Mail firstname.lastname@example.org, email@example.com,
Internet: www.balda.de. We also invite you to our ana-lysts’ conference on
next Thursday, 20th of July in Frankfurt. Details are following.
14.07.2006 DGAP’s Distribution Services include Regulatory Announcements,
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Company: Balda AG
Bergkirchener Str. 228
32549 Bad Oeynhausen
Phone: +49 (0) 57 34 / 9 22-0
Fax: +49 (0) 57 34 / 9 22-2604
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service