Lingyi iTech (Guangdong) Co., Ltd has today announced the signing of a Share Sale and Purchase Agreement with Salcomp’s owners Nordstjernan and AP6 to purchase 100% of the shares of Salcomp Group. The transaction is still subject to customary regulatory approvals and is expected to complete before end of the year.
Lingyi iTech is a Chinese, Shenzhen Stock Exchange listed company with sales of more than USD 3 billion in 2018. Lingyi’s business is consisting of high precision structures from metals and plastics, magnetic materials, flat panels and touch display modules. Lingyi has several production sites in China and one production site in Vietnam.
Most of Lingyi’s business is with same or similar customers in the smart phone industry as Salcomp. In addition, Lingyi’s products are applied in automotives, computers, office equipment, household appliances, power tools and electric toys. However, there is no overlapping product lines between Lingyi and Salcomp.
Lingyi’s strategic intention is to grow further Salcomp’s power supply business as a separate business unit, expand the business to the new segments and unlock the various synergies between the two companies.
I personally view this as a very positive deal for all our employees, customers, supplier partners and other stakeholders. Salcomp will have a new owner with solid financial background, deep understanding of our customers’ business and strong aspiration to expand our business. In addition, Salcomp has a lot to offer for Lingyi, especially in the countries like India and Brazil, where Lingyi is not yet operating.
President & CEO