Lite-On's Expansion Plans

Lite-On Technology announced its plans of expansion by acquiring the largest independent handset casing company, Perlos, who is a Finland based firm and has shares listed and traded at the OMX Nordic Exchange Helsinki. Lite-On plans to offer a public cash tender with a price of 5.20 Euro for every Perlos share in cash.

According to the news site DigiTimes, this offer represents a price of 40.5 percent over the last share price listed on the 10th of August just before the offer was made public. When compared to the volume-weighted average trading price of Perlos shares over the last three months, the public offer has a premium of 23.4 percent. Lite-On plans to raise a total of 227 million Euro with this public offer that is scheduled to begin on the 3rd of September.

A definitive agreement concerning the acquisition of the Perlos company has been signed by representatives from both firms and upon the completion of the offer, Perlos will operate as an independent business within the Lite-On group, while keeping its current profile and employees. "Starting from 2007, Lite-On has launched its customer-centric growth strategy where Lite-On provides one-stop-shopping solutions to customers via its wide range of component offerings. The acquisition of Perlos will equip Lite-On with mechanical capabilities in addition to its electronic component power," said David Lin, CEO of Lite-On Group. Right now, Lite-On is centered on the computer hardware market as well as various other ones like phone camera modules, LED, LED flashlights, keypad, GPS and several sensor types.

Perlos is known for its large customer base in the mobile-phone casings range as well as for having plastic treatment and surface tooling capabilities. Apart from handset casings, Perlos expanded sometime ago and began producing antennas and sub-assembly services, while constructing a number of production plants in Mexico, Brazil, Hungary, China and India.