Last checked at 5 Nov 2007 09:59
5 November 2007 XP Power Limited ("XP" or "the Group")
Acquisition of the remaining 50% of Fortron XP Power (Hong Kong) Limited
XP, one of the world's leading providers of power supply solutions to the electronics industry, announces the acquisition of the remaining 50% of the issued share capital of Fortron XP Power (Hong Kong) Limited effective 1 January 2008 for a consideration of US$2.5 million (approximately ‚£1.2 million) in cash. This brings XP's total holding in Fortron XP Power (Hong Kong) Limited to 100%.
Fortron XP Power (Hong Kong) Limited is XP's manufacturing joint venture with Fortron Source and is based near Shanghai in China. The joint venture was formed in late 2005 and started production in May 2006.
For the year ended 31 December 2006, Fortron XP Power (Hong Kong) Limited made a profit after tax of HK$260,000 (approximately ‚£17,000) and had net assets of HK$23,342,000 (approximately ‚£1,526,000). XP do not expect to make any fair value adjustments to the net assets acquired.
The Directors of XP believe that the acquisition of the remainder of Fortron XP Power (Hong Kong) Limited will allow more control over the manufacturing process as demanded by our larger customers which will help to further penetrate our key target customers.
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Enquiries:
XP Power Limited +65 6411 6909
Larry Tracey, Executive Chairman
James Peters, Deputy Chairman
Duncan Penny, Chief Executive Officer
Weber Shandwick Financial +44 (0)20 7067 0700
Terry Garrett/Nick Dibden/Hannah Marwood
Notes to editors:
XP Power provides power supply solutions to the electronics industry.
All electronic equipment needs a power supply. Power supplies convert the incoming AC supply into various levels of DC voltages to drive electronic components and sub-assemblies within the end user's equipment. XP Power segments its business into Communications, Defence and Avionics, Industrial and Medical. By servicing these end markets XP Power provides investors with access to the technology and industrial sectors of the global electronics market.
The market is highly fragmented and made up of a large number of small to medium sized Original Equipment Manufacturers who source standard and modified standard power supplies from several hundred power supply companies.
For further information, please visit www.xppower.com
XP POWER PLC