February 14, 2017
Delta Electronics (Thailand) Announces Deal with Delta Electronics, Inc.
BANGKOK, Thailand, February 14, 2017. - Delta Electronics (Thailand) Public Company Limited (later referred as “Delta Thailand”), announced today its board of directors has made a decision to approve a deal in which stakes in four overseas subsidiaries, currently owned by Delta Thailand’s subsidiary Delta Greentech (Netherlands) BV (later referred as “DGN”), shall be sold to Delta Electronics (Netherlands) BV (later referred as “DEN”), subsidiary of Delta Electronics, Inc. This deal shall allow Delta Thailand to realign its core competencies and resources to focus on selected high-end power systems and other electronics and industrial products.
The deal includes the sale of 51% stake in Delta Energy Systems (Switzerland) AG and Delta Greentech Electronics Industry LLC as well as the sale of 100% shares in subsidiaries Delta Greentech (USA) Corporation and Delta Greentech (Brasil) SA to DEN. The total sale value is USD24.85 million, equivalent to approximately THB874.36 million. DEN will sell its 100% stake in Eltek s.r.o. (later referred as “Eltek SK”), valued at USD 22 million (equivalent to THB774.08 million). It is expected that these transactions will
be completed before the end of 2017-Q1.
The subsidiaries sold to DEN are mainly focused on the trading of power systems. Eltek SK engages in the manufacturing of telecom power systems in Slovakia. Thus, the acquisition of the manufacturing expertise and capabilities of Eltek SK is expected to improve the economies of scale of Delta Thailand’s existing manufacturing and assembly platform in Slovakia which is dedicated to a wider range of power supplies products. The strategic nature of this deal envisions a win-win approach aimed at reinforcing the respective core competencies and strengths of both companies, with palpable synergies expected as the ultimate result.