(Hong Kong, September 11, 2001) - Leading coils manufacturer CEC International Holdings Limited ("CEC" or the "Group") (Stock Code: 759) today announced that it has entered into a conditional Agreement with Nittoku Engineering Co., Ltd. ("Nittoku") for Nittoku's subscription of 20,588,235 CEC's Shares at the Subscription Price of HK$0.68 per Subscription Share. The net proceeds from the Subscription will be approximately HK$13,800,000, which is intended for use as general working capital by the Group.
The Subscription Shares represent approximately 3.14% of CEC's entire issued share capital of 655,480,764 Shares as enlarged by the Bonus Share Issue and Subscription, which will take place after the Bonus Share Issue. Together with Nittoku's current beneficial interest in 25,281,214 Shares of CEC, which represents approximately 4.78% of the entire existing issued share capital of CEC, Nittoku will be beneficially interested in approximately 7.77% of the issued share capital of CEC as enlarged by the Bonus Share Issue and the Subscription.
The Subscription Price represents a discount of approximately 11.69 % to the closing price of HK$0.770 per Share as quoted on the Stock Exchange on 10th September, 2001; and a discount of approximately 12.17 % to the average closing price of HK$0.7742 per Share as quoted on the Stock Exchange on the 10 trading days ending on 10th September, 2001.
Established in 1972 in Japan, Nittoku is registered as an over-the-counter stock with the Japan Securities Dealers Association in Japan and is a leading global manufacturer in automatic coil winding machines and peripheral systems with current market capitalization of about HK$ 620 million. It has been a long-term and major winding equipment supplier to CEC. With its up-to-the-minute equipment and technical know-how, the Group is able to leverage the latest technology in coils manufacturing.
CEC's Chairman , Mr. Lam Wai Chun said, "We have been nurturing a long-standing relationship with Nittoku since our listing in 1999. We are very pleased with this partnership. We believe that Nittoku's subscription of our new shares will further strengthen our relationship and demonstrate their further confidence in our business and prospects."
In the current climate, requirements and expectations in the manufacturing of coils have become very tight. As a reliable business partner, Nittoku provides both quality and sophisticated equipment to the Group. The automation of production equipment supplied by Nittoku lowers our production costs and enhances the competitive edge of the Group.
Mr Nobushige Kondo, President of Nittoku said, "We are happy with CEC's highly positive performance. We are confident that with our pioneering and innovative equipment, CEC will further enhance its leading position in the coils manufacturing industry, and will also bring additional returns to shareholders."
Mr. Lam concluded, "We believe that the subscription of the new shares by Nittoku will not only strengthen our financial position, but also create significant mutual synergies, further enhancing the development of the Group's business. Our long-term relationship with Nittoku takes us a further step in establishing CEC's commitment to become a sophisticated and leading manufacturer among our competitors. We will continue to look for potential partnership that will provide the maximum benefits to our shareholders."
The Group has submitted an application to the Stock Exchange for the resumption of trading of the Shares at 10:00 a.m. on 12th September, 2001.
About CEC International:
CEC International was listed on The Stock Exchange of Hong Kong Limited on November 15, 1999. It is a reputable coils manufacturer, engaged in the design, development, manufacture and sale of a wide range of coils. CEC's coils can be commonly found in IT products, telecommunication products, home appliances and audio-visual products, among a range of other equipment. Accredited with ISO 9001 in 1995, the Company has more than 400 engineers and quality assurance staff who control the assurance of product quality.
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Remarks:
This media release and the other corporate information of CEC International Holdings Limited can also be accessed through the following website:
http://www.0759.com
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