Electronics Production | October 02, 2009
Scanfil EMS returns €65 million to parent company
On May 1, 2008, EMS-provider Scanfil plc was split into an investment company (Scanfil plc) and a subgroup called Scanfil EMS Oy. Now Scanfil EMS is to return €65 million to its parent company Scanfil plc, as the balance sheet became too strong for effective equity management.
In the 2008 business transfer, all contract manufacturing assets, liabilities and provisions were transferred to Scanfil EMS Oy. The original equity ratio aim for Scanfil EMS Oy was 35-40%. In March 2009, it was decided to return €50 million in capital to its parent company, Scanfil plc. In the current situation, the return translates into an equity ratio of approximately 50%. Because of that, Scanfil EMS Oy now decided to raise the capital return to €65 million, which is in line with the original aim (35% -40% equity ratio).