China Digital Communication Group announced today that it has entered into a Letter of Intent to acquire Billion Electronics, the parent company for Chinese battery shell producer, Shenzhen E'Jinie Technology Development Company (SETD).
Based in Shenzhen, SETD is one of China's largest battery shell manufacturers with the capability to produce 420000 steel and aluminum shells for Lithium-ion batteries, which are widely used in digital mobile devices such as digital cameras, cell phones, MP3 players, laptop computers and PDA's.
The company produces battery shells and caps at its 4000 square meter factory, which contains over 100 pieces of testing equipment and production machinery and 526 employees. The company also owns its own research and development arm, which has just recently developed a proprietary technology for preventing air leaks on aluminum battery caps. Revenue for the company's most recently completed fiscal year 2003 was US$2.1 million.
The purchase price for the acquisition is $11 million, which is payable through a combination of cash and stock. The acquisition marks the first step China Digital Communication Group is taking to grow into a multinational business specialized in manufacturing, marketing and distributing mobile device batteries and telecom equipment. The acquisition, which is subject to final documentation, is scheduled to close on or about September 24, 2004.