AEM Holdings, which is on a roll riding the up-cycle of the semiconductor industry, is offering to privatise circuit board maker CEI at $1.15 per share, valuing the target at $99.7 million.

Existing CEI shareholders are given three choices. They can take all $1.15 in cash. Or, they can take 97.75 cents in cash and 0.0486 new AEM shares priced at $3.55 for each CEI share they hold. Last but not least, they can choose 80.5 cents cash or 0.0972 new AEM shares for each CEI share.

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.

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