TechFaith to Acquire QiGi
TechFaith PR, 8/17/09
Chinese mobile phone solutions provider TechFaith (Nasdaq: CNTF) has signed a non-binding letter of intent to acquire 100% of Beijing-based smartphone manufacturer Qigi Future Technology in a stock-plus-cash transaction valued at USD 12.5 mln, USD 0.5 mln of which is to be paid in cash, the rest of which is to be paid in over 65.93 mln ordinary shares of TechFaith (one publicly traded ADS is equal to 15 ordinary shares). The number of shares issued to QiGi's current shareholders is contingent on QiGi achieving net incomes of over USD 8 mln for FY2010 and USD 10 mln for the following fiscal year, and will be accordingly adjusted if the targets are not met.
Qigi's current president, Xu Enhai, will retain his position at the head of the company, which will continue to operate largely independently after the acquisition. Wilson Cai has resigned from his position as deputy CEO of TechFaith and from its board of directors, citing health reasons. He will be replaced on the board of directors by Dong Deyou, an executive who has worked at TechFaith since 2007 in sales, supply chain sourcing, and operations.
Keywords: HR Xu Enhai Dong Deyou Wilson Cai smartphone wireless TechFaith Qigi CNTF design house M&A
Sending
