News

Delta Electronics Announces Share Swap with Cyntec

October 29, 2009 by Jeff Shepard

Delta Electronics and Cyntec held meetings of the Board of Directors, which announced the approval of Delta’s issue of new capital to swap for outstanding shares of its subsidiary, Cyntec Co., Ltd. After the exchange, Cyntec will be Delta’s 100% owned subsidiary. The exchange ratio between Delta and Cyntec shares is 1 for 1.07. The record date is tentatively set for March 31, 2010.

Delta Electronics is a leading provider of switching power supplies, as well as a major source for solar energy systems, industrial automation, and networking products. Cyntec is a professional provider of passive components. Delta currently holds 35.6% of Cyntec’s shares. Both Delta and Cyntec expect to integrate their professional technology resources in the power electronics field, expand their operation bases, raise efficiency, and offer customers complete manufacturing services with outstanding quality control. Based on Delta’s leading position in power management and Cyntec’s operations performance and R&D capabilities, the cooperation will result in improved technology, sales and marketing, as well as profitability.

The Cyntec product lines consist of power modules, passive components and sensors which serve the appliance, automotive, computer, and communication industries.

Cyntec announced consolidated revenue for March 2009 totaled NT$ 427,463 thousand, representing a 33.84% increase over the same month last year and a 54.61% sequential increase. The first quarter revenues were NT$ 956,840 thousand, representing an 8.10% increase over the same period last year. Revenue for March 2009 were NT$186,968 thousand for Taiwan operations.