Shenzhen Kaifa Purchase 30% Stake in Elcoteq SE

Netease Tech, 7/23/09

Shenzhen Kaifa Technology (000021.SZ), a Chinese manufacturer of computers and related products, announced yesterday it has signed a letter of intent to purchase a 30% stake in Finnish electronics outsourced manufacturing firm Elcoteq SE for EUR 50 mln. Should the deal be completed, Shenzhen Kaifa will receive an as yet undetermined number of newly issued shares to become the Finnish firm's largest shareholder. The deal must be finalized by the end of October.

Elcoteq SE's is engaged primarily in outsourced manufacturing of communications technology products and has research and production facilities in 15 countries. The company began running a deficit in 2007, and moved to restructure after suffering EUR 460 mln in losses in Q1 2009.

Keywords: 000021.SZ Elcoteq hardware Kaifa investment contract manufacturer telecom wireless electronics

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