Balda AG / Key word(s): Disposal/Strategic Company Decision
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.
– Balda sells 12 per cent of its TPK holding to a company of its partner
Michael Chiang and generates liquidity.
– In return, Balda acquires a 5 per cent stake in Balda Investment
Singapore (BIS) from Michael Chiang and becomes sole shareholder in BIS
– Banks supports new strategic alignment. Agreement on new financial
structure lasting until end of 2009 expected in November.
– Balda to focus on infocom core business.
– Via a stake in TPK and a cooperation Balda still to participate in
growing touch screen market.
– Telephone conferences today (see below).
Bad Oeynhausen, September 30, 2008 – The Supervisory and Management Board
of Balda AG, listed in the Prime Standard section of the German Stock
Exchange, have decided to sell 12 per cent of its stake in the touch screen
producing company TPK, Xiamen, China. Upon completion of the transaction,
Balda still holds 38 per cent of TPK and thus a substantial stake.
Balda will not participate in the upcoming TPK capital increase. This
capital increase leads to a dilution of the Balda stake in TPK from 38.0
per cent to 33.5 per cent. Due to the inflow of funds from the sale Balda
now is in no need of fresh money from the banks.
The involved parties have agreed to observe confidentiality with respect to
the purchase price. Besides the purchase price Balda will receive 5 per
cent of Michael Chiang’s stake in BIS. Balda thus again becomes sole
shareholder in BIS.
Balda will focus its activities on infocom plastic systems and components
as well as electronic products. By holding a stake in TPK Balda will also
in the future be able to participate in the dynamic growth of the
The banks explicitly support the new strategic alignment of the group.
Completion of a final agreement with the banks for a refinancing of the
existing credit lines to last until year-end 2009 is expected in November.
Cornerstones of an agreement regarding credit terms and collateral are
currently being negotiated. Until completion the banks have extended the
existing standstill agreement.
TPK is a joint venture between Balda Asian subholding Balda Investment
Singapore (BIS) and the Taiwanese family of Michael Chiang. BIS is the
operating entity for the group’s companies in Asia, including production
facilities in China (Suzhou and Beijing) and Malaysia.
To be able to profit from increasing demand for touchscreen products, TPK
will have to invest further. Due to the currently strained financial
situation, Balda will not be able to participate in capital measures needed
for this purpose.
By selling a stake of TPK to Michael Chiang the Balda holding falls from 50
per cent to 38 per cent. As a consequence, TPK will not be consolidated on
a pro rata basis as of the fourth quarter 2008. With this deconsolidation
only TPK earnings or losses will be represented in the Balda accounts in
The plastics business is developing above plan so far. This trend will
probably weaken until year-end within the plan. Balda group is assuming a
positive operating income for 2008. Against the background of a weaker TPK
performance than expected in the second half-year and the influence of
expected extraordinary effects a net loss for the full year cannot be ruled
Today, Tuesday September 30, telephone conferences with CEO Joachim Gut and
CFO Dr. Dirk Eichelberger will be held at 2.30 p.m. CET (in German) for the
media and at 3.30 p.m. CET (in English) for analysts and investors.
2.30 p.m. CET: Participants from Germany please dial the toll free number
0800 90 70 136 to enter, no code necessary. From the UK please dial the
toll free number 0800 27 94 054. Callers from other countries please use
the chargeable number +49 (0) 211 73 75 00 56.
3.30 p.m. CET: Participants from Germany please dial the toll free number
0800 80 50 122, from the UK 0800 27 99 498, no codes necessary. Callers
from other countries please the use chargeable number +49 (0) 711 96 59 96
Information and Explaination of the Issuer to this News:
Company profile Balda AG
The internationally operating Balda Group develops and produces highly
integrated devices comprising plastic, metal and electronic components as
well as touch sensors. Among the customers of the Prime Standard listed
company are international brand-names from the mobile telephony industry,
medical technology and various related markets.
The integration of plastic and touch screen technologies creates completely
new customer benefits. Only Balda currently offers both technologies from
one source on a global scale. The group has a strong position in the
important growth markets China and India and owns four production
facilities in the region. Plants in Brazil and in Malaysia, as well as the
facility in Germany for Balda Medical, underline the global competitiveness
of the group of companies.
This ad hoc announcement includes ‘forward-looking statements’ which are
based on the current expectations of the management of Balda. They are
subject to risks and uncertainty because they relate to events and depend
on circumstances that will occur in the future, such as, for example,
developments in the mobile communications industry, changes in technology
and the ability to timely and successfully develop new products and various
other factors. Balda does not undertake any obligation to update publicly
or revise forward-looking statements except to the extent legally required.
This ad hoc announcement is not an offer of securities for sale or a
solicitation of an offer to purchase securities in the United States or
elsewhere. The shares in Balda AG (the ‘Shares’) may not be offered or sold
in the United States or to or for the account or benefit of U.S. persons
(as such term is defined in Regulation S under the U.S. Securities Act of
1933, as amended (the ‘Securities Act’)) unless registered under the
Securities Act or pursuant to an exemption from such registration. The
Shares have not been and will not be registered under the Securities
If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49
5734 922 2728, Fax: +49 69 710456450. Email: firstname.lastname@example.org, Internet:
30.09.2008 DGAP’s Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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