[LOGO] NTE
LISTED
NYSE NEWS RELEASE
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REPRESENTED BY PAN PACIFIC I.R. LTD. CONTACT: Lorne Waldman
1790 - 99 WEST HASTINGS STREET President
VANCOUVER, BC, CANADA V6C 2W2 E-MAIL: shareholder@namtai.com
TEL: (604) 669-7900 FAX: (604) 669-7816 WEB: www.namtai.com
TOLL FREE TEL/FAX: 1-800-661-8831
NAM TAI ELECTRONICS, INC.
Proposes IPO of its Subsidiary, Nam Tai Electronic & Electrical
Products Limited on Main Board of Hong Kong Stock Exchange
VANCOUVER, CANADA - 15 April 2004 -- Nam Tai Electronics, Inc. ("Nam Tai" or the
"Company") (NYSE Symbol: NTE; CBOE Symbol QNA; Frankfurt Stock Exchange Symbol
884852) today announced that its subsidiary Nam Tai Electronic & Electrical
Products Limited ("NTEEP") has applied for the listing of its shares on the Main
Board of The Hong Kong Stock Exchange ("HKSE"). Nam Tai will be offering 200
million existing shares of NTEEP by way of a global offering which comprises a
public offering in Hong Kong and an international placing.
NTEEP is a wholly-owned subsidiary of Nam Tai. It is a well-established
vertically-integrated manufacturing solutions provider for some of the world's
reputable leading brand owners of consumer electronics and communications
products. Its largest customers include Sony Ericsson, Texas Instruments, Sony
Computer Entertainment, Seiko Instruments, OmniVision, Appeal Telecom and Canon
(C.E.B.M.). NTEEP offers customers services ranging from design and development,
industrialization and qualification, volume-manufacturing, quality control to
supply chain management. NTEEP currently focuses on four segments of the
consumer electronics and communications sectors, include,
o Optical devices such as CMOS image sensor modules;
o Home entertainment devices such as the EyeToy(R) USB camera accessory and
USB microphone and converter box for Sony Computer Entertainment's
PlayStation(R)2;
o Mobile phone accessories such as BluetoothTM headsets, snap-on digital
cameras and snap-on flash lights; and
o Educational products such as calculators and electronic dictionaries.
NTEEP has achieved excellent results with its gross profit accounting for over
40% of the total gross profit of Nam Tai in the past three years.
Nam Tai will offer for sale 200 million existing shares of NTEEP (subject to the
over-allotment option), representing approximately 25% of the issued shares of
NTEEP, by way of a global offering, in which (subject to adjustment) 180 million
shares are offered by way of international placing, and 20 million shares are
offered by way of a public offer in Hong Kong. The offer price per share will be
not more than $0.538(HK$4.20) and is expected to be not less than
$0.455(HK$3.55). The expected listing day of NTEEP on HKSE is 28 April 2004.
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Mr. Tadao Murakami, Nam Tai's Chairman, said, "I am pleased to see the IPO of
NTEEP, it is our many years' efforts that make it realized. Over the years, we
have trained up a group of seasoned second generation management. I am glad to
see our first spin off and look forward to seeing other fruitful results under
their own management in the near future. I would like to express my special
appreciation to Ms. Karene Wong, the Chairman of NTEEP, who helps NTEEP building
up and securing couples of well known customers. With her efforts since 1989,
NTEEP has built a strong relationship with Texas Instruments, Sony Ericsson and
many other top international consumer electronic brands. "
Ms. Wong added, "I am excited that Nam Tai is always confident in me. It is Nam
Tai's culture that creates the warmest atmosphere for us to realize the
corporate vision. Looking into the future, we seek to diversify our product
types and to actively explore opportunities in different electronic sectors such
as developing GPS and CMOS image sensor modules for car parking system. It is
our objective to devote every effort on creating profit for NTEEP, rewarding our
shareholders by favourable returns."
"The IPO of NTEEP represents a new milestone of Nam Tai. In the past, some of
the Asian funds are very interested in Nam Tai but not able to invest in Nam
Tai's shares because of their fund mandate to only invest in Asian markets. The
IPO of NTEEP, a major subsidiary of Nam Tai, gives an opportunity to those funds
to invest in a Nam Tai company. Furthermore, with the IPO of NTEEP, the profile
of Nam Tai and NTEEP will further be raised in Hong Kong and the Asian region,
which helps attracting customers and developing businesses," Mr. Murakami
continued.
"So, since the operation of NTEEP is generating a strong cash flow, has a total
shareholders' equity of approximately $85 million as at the date of listing and
negligible bank borrowings, NTEEP should have sufficient funds for its future
business development, no new shares are therefore issued in the IPO of NTEEP.
The shareholders of Nam Tai are final beneficiaries as no dilution will occur,
and the IPO of NTEEP is also in their best interest by creating business
opportunities and also bringing a proceed as extraordinary income ranging from
approximately $91 million to $108 million to Nam Tai. The IPO of NTEEP will
therefore create a gain for Nam Tai in short term. This significant gain further
strengthens our financial position. It enables us to expand our business to
support our future growth and to grasp any appropriate investment opportunities
to benefit our shareholders in long term, without having to raise fund by way of
offering and thus diluting the existing shareholders' interest."
Mr. Murakami concluded, "Whilst NTEEP will become a listed company in HKSE, Nam
Tai remains in control of NTEEP and will have a shareholding of 75% in NTEEP
after the IPO (assuming that the over-allotment option is not exercised). All in
all, we believe the IPO of NTEEP is for the best interest of Nam Tai, its
shareholders and employees of NTEEP, and can strengthen Nam Tai's leading
position in the consumer electronic market."
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Listing details at a glance
NTEEP's Iisting on the MAIN Board of The Stock Exchange of Hong Kong Limited
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o Global Coordinator, Bookrunner, Lead Manager & The Hongkong and Shanghai Banking Corporation Limited (HSBC)
Sponsor
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o Global Offering - no. of shares~ (subject to adjustment and the over-allotment option)
International Placing 180,000,000 shares (90% of total offer)
Public Offer 20,000,000 shares (10% of total offer)
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o Offer Price $0.455(HK$3.55) - $0.538(HK$4.20)
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o International Placing Commence 12 April 2004(Hong Kong)
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o Public Offer Commence 16 April 2004(Hong Kong)
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o Public Offer Deadline 21 April 2004(Hong Kong)
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o Listing Date 28 April 2004(Hong Kong)
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o Stock Code 2633
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About Nam Tai
We are an electronics manufacturing and design services provider to original
equipment manufacturers of telecommunications and consumer electronic products.
Through our electronics manufacturing services operations, we manufacture
electronic components and subassemblies, including LCD panels, LCD modules,
radio frequency modules, flexible printed circuit subassemblies and image
sensors. These components are used in numerous electronic products, including
cellular phones, laptop computers, digital cameras, copiers, fax machines,
electronic toys, handheld video game devices and microwave ovens. We also
manufacture finished products, including cellular phones, palm-sized PCs,
personal digital assistants, electronic dictionaries, calculators and digital
camera accessories for use with cellular phones.
Safe Harbor
Certain statements in this press release are "forward-looking statements" within
the meaning of U.S. federal securities laws. Nam Tai intends that these
statements be covered by the safe harbors created under these laws. These
forward-looking statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from future results
expressed or implied by the forward-looking statements. Many of these factors
are beyond Nam Tai's ability to control or predict. Given these uncertainties,
readers are cautioned not to place undue reliance on the forward-looking
statements, which only speak as of the date of this press release. Nam Tai does
not undertake any obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after the date of
this press release or to reflect the occurrence of unanticipated events, except
as may be required under applicable securities laws.
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