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Electronics Production | February 28, 2008

Scanfil to separate EMS-business

Finland based Scanfil plc's Board of Directors proposes the splitting of the company with a business transfer and confirms the new business strategy. The goal is to increase the contract manufacturing business with the company arrangement and by investing the retained earnings in areas of new business.

The Board of Directors of Scanfil plc will propose to the annual general meeting that the company will be split up with a business transfer into an investment company and sub-concern practicing contract manufacturing business. Scanfil plc's electronics contract manufacturing business will be differentiated in the business transfer into a subsidiary 100% owned by the company. Scanfil plc will continue as the parent company and will operate in other business areas in the role of the owner. The company will actively practice investment business. The goal of the arrangement is to increase value of the owners in the long run and to improve the development of the value of the stock on the stock markets. The electronics contract manufacturing is being developed as a strong Nordic operator and the objective is to arrange the contract manufacturing business in such a way as to strengthen the global market position. The Scanfil EMS Oy concern, which is created in the business transfer, is a competitive and profitable company in its own field and we believe that the scale of economies will improve the competitiveness even more. The change in company structure will simplify the realization of the company arrangement. The self-sufficiency of the sub-concern will remain at a good level. Scanfil plc will concentrate in the ownership role of contract manufacturing and the new business sectors. The goal is to invest the company's capital in a profitable way into select businesses in the target companies. In the selected target companies, we will strive to acquire such an ownership share, wherein we can actively influence the company's operations. We can also own shares of stock and invest capital in other targets. The goal of the company is not to be an active share trader but the investments are long-term. The purpose of the splitting is to manage the assets more efficiently and profitably by spreading out the risks and seeking for new growth possibilities with these measures. The goal is to receive a better than market yield for the invested capital. President Mr. Harri Takanen: "In part of the contract manufacturing business, we will strive to find cooperation arrangements and benefit from the scale of economies. The new structure supports this goal and for example, the realization of the company arrangement will be noticeably easier. We are still one of the most financially sound contract manufacturers but a little closer to other contract manufacturers in self-sufficiency. The back rest given by the strong and financially sound owner provides good possibilities to operate actively in the structure arrangements."
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