Electronics Production | October 02, 2009
Videocon in acquisition talk with Elcoteq
The EMS-deal of the year is getting closer. According to Swedish newspaper Dagens Industri, Elcoteq’s founder and major owner Antti Piippo has given the 'go-ahead' for India-based Videocon; with due diligence.
evertiq reported this morning that Finland-based EMS-provider Elcoteq has signed a non-binding Letter of Intent with Videocon Industries, regarding the authority to negotiate and finalize a potential transaction agreement. According to Dagens Industri, the Elcoteq's founder and major owner Antti Piippo has signalled a go-head. During the 90s, Antti Piippo built up Elcoteq to become one of the largest EMS-providers in the world. Today the company has facilities in 14 countries with 13 000 employees. Over the last years the company has suffered from a large debt burden. Elcoteq has tried to find new capital, but failed; the latest being China-based Shenzhen Kaifa Technology, which withdrew its investment in Elcoteq. This news story has lifted the Elcoteq stock at the Helsinki stock exchange. With today's share price of €1,26, Elcoteq is worth around €41 million. In 2000, when Antti Piippo and Elcoteq were at their best, the company was worth €1.4 billion, according to Dagens Industri. Antti Piippo was a billionaire back then and lived like one. But his alcohol abuse and his affairs got large attention from the press. Especially, when - in the summer of 2001 - a party at his summer house turned nasty and police became involved. He temporarily left the board of directos at Elcoteq and was charged for assault, the report continues.