Negotiations with Videocon terminated
(Thomson Reuters ONE) -
Elcoteq SE
Stock Exchange Release
March 31, 2010 at 08:45 am (EET)
After a mutual re-assessment, Elcoteq and Videocon have decided to terminate the
negotiations aiming at Videocon becoming a major shareholder in Elcoteq.
In September 2009, Elcoteq announced that it had signed a non-binding Letter of
Intent with Videocon Industries Limited (Videocon) regarding a major equity
investment which would have made Videocon a major single shareholder in Elcoteq.
After mutual re-assessment, the parties decided to terminate the negotiations in
March 2010.
In January 2010, Elcoteq issued hybrid securities in an amount of EUR 29 million
and used the proceeds directly to repay outstanding debenture bonds having an
aggregate nominal amount of EUR 105 million. This major transaction improved
significantly Company's indebtedness and solidity. If the debenture and hybrid
transaction had taken place in 2009, as at December 31, 2009, the company's
gearing would have been 0.7, solvency 24% and net debt EUR 82 million.
By improving the equity structure of the Company, the transaction altered the
original investment structure planned by Videocon, and finally led to the mutual
decision of both parties to terminate the negotiations.
Elcoteq continues to seek alternative ways to further strengthen its financing
structure through equity and long-term financing arrangements.
ELCOTEQ SE
Satu Jaatinen
Communications Manager
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287
About Elcoteq
Elcoteq SE is the global Life Cycle Service Partner for high-tech product and
service companies.
Engineering, Manufacturing, Fulfillment and After Market Services are the
cornerstones of Elcoteq's extensive service offering. Elcoteq has a proven track
record in electronics manufacturing services (EMS) and a global factory network
coupled with modern manufacturing equipment and consistent systems and
processes.
Products include Consumer Electronics devices such as mobile phones and their
accessories, set-top boxes, flat panel TVs as well as System Solutions products
such as infrastructure systems, modules and other industrial segment products.
The Group's consolidated net sales for 2008 totaled 3.4 billion euros and it
employs approximately 11,000 persons. Elcoteq SE is listed on the Nasdaq OMX
Helsinki Ltd. For more information visit the Elcoteq website at
www.elcoteq.com.
[HUG#1399553]
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Datum: 31.03.2010 - 01:45 Uhr
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