Semi-Tech Global Subscribes For New Shares In Akai.MARKHAM, ONTARIO--(BUSINESS WIRE)--March 19, 1998--Semi-Tech Corporation ("Semi-Tech") announced today that its affiliate Semi-Tech (Global) Company Limited issued the following press release concerning the subscription of new shares in Akai Electric Co. Ltd. Akai is a subsidiary of Semi-Tech (Global) Company Limited, an approximately 42% owned affiliate of Semi-Tech. Semi-Tech Corporation is a Canadian-based multinational company engaged in the global marketing and distribution of consumer products for the home, principally through its subsidiaries and affiliates. Semi-Tech's shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (Class A: SEM.A; Class B: SEM.B). Class A shares are also listed on the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg under the symbol SEM.A and in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol SEMC SEMC Sony Ericsson Mobile Communications SEMC Sony Ericsson Mobile Communications, AB SEMC Structural Engineering Mechanics and Computation SEMC State Emergency Management Committee (Australia) SEMC Search Engine Marketing Council .F. Shares of Semi-Tech (Global) Company Limited are listed on The Hong Kong Stock Exchange The Hong Kong Stock Exchange (Traditional Chinese: 香港交易所, also 港交所; abbreviated as HKEX; HKSE: 0388 ) is the stock exchange of Hong Kong. under the symbol 448. The ordinary shares of Semi-Tech (Global) are also traded on the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. in the United States through a sponsored ADR Sponsored ADR An ADR which is issued in co-operation with the underlying foreign company whose equity shares will underly the ADR shares. With the corporation's sponsorship, the ADRs created in the issue usually afford their owners the same rights normally given to stockholders, program under the symbol SITGY. Akai Electric Co. Ltd. shares are listed in the First Sections of the Tokyo, Osaka and Nagoya Exchanges under the Code number 6802. Contact: Ralph S. Barnes 905-475-2670 (Ext. 307) Visit our Website at: www.semi-tech.com SEMI-TECH (GLOBAL) COMPANY LIMITED (Incorporated in Bermuda with limited liability) Subscription of new shares in Akai Electric Co., Ltd. 1. SUMMARY The Directors of Semi-Tech (Global) Company Limited ("Company") announce that on 19th March, 1998, the directors of Akai Electric Co., Ltd. ("Akai"), a subsidiary of the Company, have resolved to issue and allot al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. to Beleza Holding Amsterdam B.V., a wholly-owned subsidiary of the Company, a total of 49,656,000 new shares ("New Shares") of Yen50 each in Akai for the consideration ("Consideration") of Yen7,200,120,000 (approximately HK$432 million) in cash. The New Shares will rank pari passu [Latin, By an equal progress; equably; ratably; without preference.] Used especially to describe creditors who, in marshalling assets, are entitled to receive out of the same fund without any precedence over each other. PARI PASSU. By the same gradation. in all respects with the existing issued shares of Akai. The New Shares will be issued at a price of Yen145 (approximately HK$8.7) per share and will represent approximately 21.1 per cent. of the existing issued share capital and 17.4 per cent. of the enlarged share capital of Akai. After the subscription ("Subscription") of the New Shares by the Company, the Company's shareholding in Akai will increase from the existing 64.6 per cent. to 70.8 per cent. of the enlarged share capital. The remaining shares are held by independent third parties not connected with the Directors, chief executive or substantial shareholder of the Company or its subsidiaries, or any of their respective associates. It is expected that the Subscription will be completed on 13th April, 1998. 2. ISSUE PRICE The issue price of Yen145 (approximately HK$8.7) per share for the New Shares represents a discount of approximately 9.4 per cent. to the average of the closing prices for Akai shares on the Tokyo Stock Exchange Tokyo Stock Exchange Main stock market of Japan, located in Tokyo. It opened in 1878 to provide a market for the trading of government bonds newly issued to former samurai. for the three months up to and including 18th March, 1998. The closing price for Akai shares as at 18th March, 1998 is Yen185 (approximately HK$11.1). The Directors, including the independent non-executive Directors, of the Company considered that the issue price is fair and reasonable. Payment for the Consideration will be funded by internal resources of the Company. 3. BENEFITS OF SUBSCRIPTION The Subscription will strengthen the financial position of Akai with total shareholders' funds as of 30th September, 1997 increasing by Yen7,200,120,000 (approximately HK$432 million) to Yen46,972,120,000 (approximately HK$2,818 million), on a proforma basis. In addition, Akai's ratio of long term borrowings to total shareholders' funds as of 30th September, 1997 on a proforma basis will be substantially improved from 64% to 15%, as a result of the Subscription and also due to the repurchase of all its outstanding convertible bonds due 2001 of Yen18,400 million (approximately HK$1,104 million) in January 1998. The Subscription reflects the strong confidence and support of the Company in Akai. With the strong financial position, the Directors of the Company consider that Akai is well poised for ample opportunities which in turn will benefit the Company. 4. INFORMATION ON AKAI Akai is a Japanese publicly-listed company engaged in the manufacture and sale of quality digital consumer products, video and audio equipment, and electronic musical instruments. For the year ended 31st March, 1997, the sales of Akai were Yen58,538 million (approximately HK$3,512 million) and its audited net profit amounted to Yen2,011 million (approximately HK$121 million). For the nine months ended 31st March, 1996, the sales of Akai were Yen31,119 million (approximately HK$1,867 million) and its audited net profit amounted to Yen597 million (approximately HK$36 million). The audited net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of Akai amounted to Yen37,702 million (approximately HK$2,262 million) and Yen15,193 million (approximately HK$912 million) as at 31st March, 1997 and 31st March, 1996 respectively. Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , 19th March, 1998 Note: The yen denominated figures contained herein have been converted into Hong Kong dollars Noun 1. Hong Kong dollar - the basic unit of money in Hong Kong dollar - the basic monetary unit in many countries; equal to 100 cents at the rate of 100 yen = HK$6 for easy reading. For further information, contact: Mr Paul Lam Semi-Tech (Global) Company Limited Tel No.: (852) 2524 1043 Hong Kong Fax No.: (852) 2845 3558 Hong Kong CONTACT: Ralph S. Barnes 905/475-2670 (Ext. 307) |
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