GP Batteries Forms Strategic Alliance with
China Development Corporation of Taiwan
To Further Expand its Lithium-Ion Battery Business in Taiwan
9 October 1998, Singapore - GP Batteries International Limited ("GP Batteries"), is pleased to announce that it has reached preliminary agreement subject to contract with China Development Corporation ("CDC") of Taiwan such that its wholly-owned subsidiary in Taiwan, Gold Peak Industries (Taiwan) Limited ("GPIT") will place 29,200,000 new shares of NT$10 each at NT$12 each to CDC.
At the same time GPIT will issue 111,900,000 new shares of NT$10 each at NT$12 each to GP Batteries. Upon completion, GP Batteries' shareholding in GPIT will be diluted to approximately 84% and the remaining 16% will be owned by CDC. CDC is a leading investment bank in Taiwan with market capitalisation exceeding US$5 billion.
The issue price of the new shares of NT$12 represented the approximate unaudited net tangible asset value per share of GPIT as at 31 August 1998. The total proceeds from the issue of new shares of NT$1,693,200,000 (about US$50 million) will be used to fund the acquisition of the manufacturing equipment and know-how for production of lithium-ion ("Li-ion") rechargeable batteries, future R&D expenditure and working capital. GPIT will also acquire all GP Batteries' assets previously located at the Li-ion plant at Waterbury, USA.
Mr Andrew Ng, Chairman and Chief Executive of GP Batteries said, "We are very pleased to have CDC as our strategic partner. The alliance will enable us to penetrate the fast growing computer market in Taiwan more rapidly. With the support of CDC, we will be able to further expand its Li-ion battery business and strengthen GP Batteries market position".
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