Hannstarboard, a PCB manufacturing plant in the Walsin Group and Careergroups, a soft board (FPC) factory mutually held a major information briefing at the Stock Exchange on July 30, during which the two parties announced their cooperation project. In the news briefing, Wang Ji-Hui, the spokesperson for Careergroups and Li Kun-Tang, the spokesperson for Hannstarboard, explained that Hannstarboard would place NT$2.438 billion on private equities to invest in Careergroups and in return, obtain 16% equity of the stake holding after the capital increase. Moreover, the company stated that they would also invest in Careergroups in the form of share exchange to obtain 8% of the equity. When the transaction is complete, Hannstarboard would have achieved a total of 24% of the equity, while becoming the largest shareholder of Careergroups. 

 

 

    Careergroups and Hannstarboard additionally held a board meeting on July 30 and the cooperation project between the two companies was cleared of approval during this meeting. Furthermore, Hannstarboard and Careergroups concluded their discussions and signed the "Subscription Agreement through Private Equity" as well as the "Share Exchange and Business Cooperation Contract." According to the contents of the contract, Hannstarboard is expected to acquire private equity amounting to NT$2.438 billion for the share subscription of Careergroups, accounting for about 16% of the equity after the capital increase is completed by Careergroups. In addition, Hannstarboard should invest in Careergroups by way of share exchange resulting in the company obtaining 8% of the equity of Careergroups after the capital increase in this cooperation case. However, this would also result in Careergroups acquiring approximately 6.5% of the shares from Hannstarboard. 

 

 

    The conversion ratio of this share exchange is set at 1.36; in other words, one ordinary share with Hannstarboard is exchanged for 1.36 shares of Careergroup’s ordinary shares. Upon the completion of the investment cooperation, Hannstarboard will have acquired approximately 24% of the equity from Careergroups.

 

 

  As indicated by Hannstarboard, in response to the changes in the international economic environment as well as the rise of mainland-based PCB industries, the company would have to rely on the technology and marketing specialty of Careergroups in FPC. Through the cooperation with Careergroups, the two companies would work together to jointly expand the market, while helping Hannstarboard to develop potential customers and expand its operation scale.

Hannstarboard hopes that the original advantages of the two parties will be integrated through this cooperation opportunity. Under the current rapid developments of the 5G market and the developmental trends of soft and hardboard products, the benefits in the economic scale and financial efficiency is enhanced as the two companies merge their functions and expertise.

 

 

    Careergroups also pointed out that they would expand the market layout, integrate resources through this cooperation, and build its competitive advantage in the industry, thus, striving for a steady development to achieve a more competitive advantage. In the future, Careergroups will, through the expansion of their customer base and the sharing of professional technology, work with Hannstarboard to create a complimentary scenario. (News source: Central News Agency).