AEM, which provides testing and handling services for its key client Intel Corp, does not intend to revise its offer.
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Certain existing CEI shareholders, including executive chairman Tien Sing Cheong and managing director Tan Ka Huat have given their irrevocable undertaking to sell their shares to AEM. Together, they hold 20,526,040 shares, equivalent to 23.68%.
AEM sees synergistic benefits owning CEI. For one, CEI’s printed circuit board assembly capabilities will enable AEM to have improved vertical integration with a higher level of control towards quality and agility over the entire supply chain.
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By owning CEI, AEM can beef up the resilience of its supply chain and manufacturing operations, given the geo-political tensions. There are also cross-selling opportunities.
CEI shares last traded at 99 cents before the offer was announced and closed on Jan 11 at $1.
AEM shares closed Jan 11 at $3.67 and is up 67.6% over the past 12 months
