Business, Gadgets & Electronics

O-film To Buy Sony's Manufacturing Base In Guangzhou

China's A-share market listed company O-film plans to invest CNY1.58 billion to acquire Sony's one manufacturing base in Guangzhou and over half of the acquisition amount will be used to pay debts of the Japanese company.

O-film's acquisition target is Sony Electronics Huanan Co., Ltd., which is Sony's Chinese subsidiary. The company mainly focuses on manufacturing and sales of miniature cameras and related parts. In 2015, it achieved operating revenue of CNY6.828 billion and net profit of CNY109 million.

The total consideration for this acquisition is USD234 million, which is about CNY1.58 billion. Of the total acquisition amount, USD95 million will be used for equity acquisition; while USD139 million will be used to pay debts.

By the end of 2015, Sony Electronics Huanan had total assets of CNY3.682 billion; its net assets were CNY615 million; and its current liabilities were CNY3.067 billion.

On the completion of the acquisition, O-film will make an additional investment of USD32 million to meet the project operation demand of Sony Electronics Huanan.

Commenting on this acquisition, O-film said that Sony Electronics Huanan has industry-leading camera module development and packaging technologies. With the acquisition, O-film will receive its advanced technology and operation management mode to rapidly improve the company's camera module manufacturing technology level.

Meanwhile, by integrating and absorbing Sony's complete internal quality and operations management system, O-film is expected to realize management level improvement and enhance its core competitiveness in the camera sector.

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend