[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.'s
Subsidiary, Nam Tai Electronic & Electrical Products Limited
Announces Placing & Public Offer Allotment Results
* * * *
Placing & Public Offer Are 4 Times & 3.8 Times Covered Respectively
* * * *
Price Fixed at $0.497 Per Share
VANCOUVER, CANADA -- April 27, 2004 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NYSE Symbol: NTE; CBOE Symbol: QNA; Frankfurt Stock Exchange
Symbol: 884852) today announced that the IPO of its subsidiary Nam Tai
Electronic & Electrical Products Limited ("NTEEP") has received favourable
response. NTEEP's international placing of 180 million shares were 4 times
covered while its public offer of 20 million shares were 3.8 times covered. The
offer price fixed at $0.497(HK$3.88) per share. The Hongkong and Shanghai
Banking Corporation Limited is the global coordinator, bookrunner, lead manager
and sponsor. Dealings in shares of NTEEP will commence on the Main Board of The
Stock Exchange of Hong Kong Limited on Wednesday, April 28, 2004. The stock code
is 2633.
Commenting on the encouraging placing and public offer results, Mr. Tadao
Murakami, Nam Tai's Chairman, said, "These satisfactory results show that we
have gained support from both institutional and retail investors. We attribute
this to our established foundations, worldwide business coverage and leadership
in the electronic manufacturing services market. The enhanced reputation of Nam
Tai and NTEEP not only attract more global investors, but also give
opportunities to explore our businesses."
For the purpose of listing, Nam Tai transferred its subsidiary, Namtai
Electronic (Shenzhen) Co., Ltd. ("NTSZ"), to a newly incorporated Cayman Island
company named Nam Tai Electronic and Electrical Products Limited, ie. NTEEP, at
a consideration of $90 million in July 2003. As a result, NTEEP was indebted to
Nam Tai of approximately $90 million as shown in the audited financial statement
of NTEEP for the year ended December 31, 2003. In March 2004, Nam Tai
transferred its subsidiary, Nam Tai Investments Consultant (Macao Commercial
Offshore) Company Limited to NTEEP at a total consideration of approximately
$1.54 million. NTEEP was thus totally indebted to Nam Tai of approximately $92
million.
At the material time, there were also other inter-company balances between NTSZ
and other companies within the Nam Tai Group. In order to clear all these
inter-company balances between NTEEP group and the Nam Tai group, the said sum
of $92 million owed by NTEEP to Nam Tai was capitalized on April 8, 2004, ie.
the debt was transformed into equity of NTEEP. On the same day, NTEEP declared a
dividend of approximately $36 million to Nam Tai, which dividend was immediately
applied by Nam Tai in partial settlement of the inter-company balances between
NTEEP group and the Nam Tai group. The aforesaid transactions are only
accounting transactions and did not involve any cash movement.
Nam Tai will only further pay a sum of $10 million in cash to NTEEP after
listing of NTEEP to fully settle the remaining outstanding inter-company
balances between the NTEEP group and the Nam Tai group. As a result thereof,
NTEEP has no material borrowings except for trade payables in the usual course
of business.
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Since, all the shares of NTEEP involved in the IPO are existing shares of NTEEP,
all proceeds raised in the IPO will go to Nam Tai instead of NTEEP. Based on the
said offer price of $0.497 (HK$3.88) per share, the IPO of NTEEP will bring to
Nam Tai a net proceed (after deducting all expenses relating to the IPO) of
approximately $90 million (subject to final adjustment). The same represents a
profit of approximately over $65 million (subject to final adjustment) to Nam
Tai which will be booked in the profit and loss account of Nam Tai for the
second quarter of 2004.
About NTEEP
NTEEP 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.
About Nam Tai
Nam Tai is an electronics manufacturing and design services provider to original
equipment manufacturers of telecommunications and consumer electronic products.
Through its electronics manufacturing services operations, Nam Tai 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. Nam Tai 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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