FIT HON TENG (06088) released a notice that it will acquire AK Group's target assets through FIT GmbH and FIT Voltaira (both are indirect wholly-owned subsidiaries of the company) on July 10 and July 11, 2024 (German time) respectively. The proposed transaction price will be 72.5 million euros (there may be adjustments when the transaction is completed if applicable).
FIT HON TENG (06088) released a notice that on July 10 and July 11, 2024 (German time), FIT GmbH and FIT Voltaira (both are indirect wholly-owned subsidiaries of the company) entered into an agreement with each seller to purchase and the seller agreed to sell the target assets of AK Group, subject to certain conditions. The proposed transaction price will be 72.5 million euros (there may be adjustments when the transaction is completed if applicable).
After the proposed transaction is completed, the company (through FIT GmbH and FIT Voltaira) will own the target assets of AK Group.
AK Group has decades of experience in the automotive industry and is a leading innovator in high-voltage power distribution systems for OEMs, providing customized, highly flexible, and best-matching products and solutions covering cables, high-voltage connectors, fuses, distribution, and electric vehicle solutions. In addition, AK Group has recently invested heavily in the field of electric vehicles, particularly in busbars and aluminum cable technology for high-voltage electric vehicle systems.
The company is committed to improving its product mix to achieve higher gross margins. In recent years, it has implemented the '3+3' global strategy and has made significant progress in the fields of electric vehicles, audio, and 5G AIoT. The Group is proficient in electrical components in the automotive system and power distribution areas, and is focused on transforming to electric mobility solutions. The proposed transaction is expected to expand the Group's automotive business and electrification core capabilities in terms of product range and customer base through vertical expansion, and utilize AK Group's global manufacturing, sales and R&D network to increase the Group's market share in the field of electric vehicle mobility and expand its global coverage to achieve synergies. AK Group is expected to become an important part of FIT Voltaira Group GmbH (including FIT GmbH), thereby strengthening its position as a global leading system supplier in the mobility market.
Considering AK Group's innovative and engineering capabilities (especially in the field of electrification); the proposed transaction is expected to bring significant synergies and create new market opportunities (such as cross-selling, cost savings, and revenue growth) to FIT Voltaira Group GmbH; and the skills and experience of AK Group employees (the company plans to include them in FIT Voltaira Group GmbH), the Group intends to acquire AK Group's assets, especially the assets of the company that cannot pay its debts. Therefore, the company believes that the proposed transaction is in the overall interests of the company and its shareholders.