Lite-On Technology Announces the Successful Completion Cash Tender Offer for Perlos

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Press Releases

2007/10/24

[24 Oct 2007, Taipei] Lite-On Technology (2301.TW) (“Lite-On”) announces the successful completion of the previously-announced tender offer for the world’s largest handset casing company, Perlos Corporation (POS1V: FH) (“Perlos”). Lite-On announced on 13 August 2007 a public cash tender offer for all issued and outstanding shares and options of Perlos. The tender offer period commenced on 3 September 2007 and the extended tender offer period ended on 22 October 2007.

As a preliminary result of the Tender Offer based on the validly given acceptances of shares, Lite-On's ownership is 95.14% of the shares and votes in Perlos (counted before taking into account dilution from the exercise of stock options). Should the validly tendered options be taken into account and the proportion of share capital and voting rights be calculated in relation to the number of shares in a situation in which all the options issued by Perlos would have been converted into shares, Lite-On’s holding in Perlos would be 95.14 per cent of share capital and voting rights.

Lite-On’s ownership in Perlos upon the settlement of the completion trades will exceed nine-tenths (9/10) of the shares in Perlos and of the total votes attached thereto, Lite-On could initiate a redemption proceeding for the remaining shares in Perlos under the Finnish Companies Act.

The acquisition of Perlos will equip Lite-On with mechanical capabilities in addition to its electronic component power. Lite-On currently provides phone camera modules, LED, keypad, GPS, and various types of sensors for its handset customers. Perlos will complete the product portfolio by adding casing, antenna and sub-assembly for modules. The combination of Lite-On and Perlos will significantly strengthen the handset component cluster capabilities of the combined group to provide more products and betters services to handset customers.

In addition to synergies in product offerings, Lite-On and Perlos complement each other well in many other aspects. Perlos’ comprehensive global manufacturing platform, including the Americas, Europe, and Asia, coupled with Lite-On’s strong relationships in the Taiwan/China handset supply chain will benefit both companies. It will also open up new cross-selling opportunities given the limited overlap in the customer mix. The combination will see immediate synergies and is expected to achieve greater presence of the combined group in the ever-competitive handset market.