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  •  08/23/2019

Memtech International Completes Delisting from the Singapore Stock Exchange and Becomes A Privately Held Company with USI Holding an Indirect Stake of 42.23%

(2019-8-23 Shanghai) USI (SSE: 601231), a global electronics design and manufacturer leader, today announced that it has successfully completed the tender offer for Memtech International Ltd. (hereinafter referred to as "Memtech"), a company listed on the Singapore Stock Exchange. The tender offer was jointly initiated by its wholly-owned subsidiary Universal Global Technology Co., Limited (hereinafter referred to as "UGT"), Keytech Investment Pte. Ltd. (hereinafter referred to as "Keytech"), the controlling shareholder of Memtech and all the directors of Keytech and the Chuang Family. Memtech was delisted from the main board of the Singapore Exchange on August 22, 2019.

M-Universe Investments Pte. Ltd. (hereinafter referred to as "M-Universe"), a special purpose entity, was set up in Singapore by UGT to facilitate the privatization of Memtech. M-Universe as the offeror, made the tender offer at SGD 1.35 per share. As of August 22, 2019 upon Memtech's delisting from the Singapore Exchange, M-Universe directly holds 100% of the shares of Memtech. The shareholding ratio of M-Universe is comprised of UGT's 42.23% (UGT's investment of approximately USD60 million), and Keytech's 57.77%, allowing the retention of a controlling stake in Memtech. The founders of Memtech, the Chuang family and the management team together hold 100% of the equity of Keytech.

Founded by the Chuang family and the management team in 2000, Memtech is headquartered in Singapore with manufacturing bases in Nantong, Kunshan and Dongguan as well as a wide networking of sales and service offices in Germany, mainland China, Japan, the United States and Taiwan. Memtech specializes in a one-stop service offering in design, processing and manufacturing of precision molds and mechanical components, and produces high-end silicone, silicone and plastic bonding, auto plastic interior and other mechanical components. Its sales in the automobile, consumer electronics, communications, and industry and healthcare segment account for 49%, 36%, 8% and 7% of total revenue respectively. In 2018, Memtech recorded operating income of USD 192 million, net profit of USD 9.6 million and year-end net assets of USD 126 million. Memtech's customers include major automotive suppliers, Continental, Magna and Kostal along with global brands such as Amazon, Beats, Kyocera, Netgear, and Roku. 

USI invested about USD 60 million to indirectly acquire 42.23% of the equity of Memtech as part of the company's vertical integration strategy of the supply chain. Going forward, the strengthening of business and technical cooperation with Memtech will enhance USI's supply chain dynamics and raise its competitiveness in the field of mechanical components. Memtech is a well-established company with strong product design and technical advantages focusing on precision mold processing and mechanical component manufacturing. The company has also built a strong customer base, a stable core management team and a sound financial position. USI is optimistic about the future development of Memtech. In addition to the win-win value generated by the industry alignment, USI expects to gain considerable financial returns from this investment.
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