Swedish EMS provider to become major shareholder in Enedo

Inission intends to acquire 34'000'000 shares in the company. However, this is conditional to the Board of Directors of Enedo being authorised by the Extraordinary General Meeting to issue the shares and the Finnish Financial Supervisory Authority granting exemption to Inission from the obligation to launch a mandatory tender offer. After the direct share issue Inission will hold approximately 49% of the shares and votes in the company. The directed share issue is part of Enedo’s comprehensive arrangement of debts and thereto related rights issue, a press release reads. Enedo is a European designer and producer of electronic power supplies and systems. The company has its headquarters and operations in Finland Enedo but also runs operations in Italy, USA and Tunisia. Production mainly takes place at Enedo's factory in Tunisia with approximately 200 employees. The growth in the power supplies industry is driven by the electrification of the society. All electronics such as 5G, IoT, batteries etc needs reliable power supplies. The power supply industry is an important enabler for the electrification. The growth in the sector is expected to be twice that of EMS, about 6% annual growth. With the investment, Inission will investigate the possibility of developing common business together with Enedo. Enedo products have a potential to be supplied to Inission’s customers and the same applies for Enedo’s customers that can be offered the services from Inission. The manufacturing unit in Tunisia could be complementary to Inission’s Nordic and Baltic factories and is very well acquainted with deliveries to Europe and North America. The Electronics industry in Tunisia is substantial, and Tunisia has a well regarded trading-history with EU and North America. "The power supply industry is forecasted to be an important strategic resource and have a prosperous future. After discussions with representatives of the company and with the chairman of Enedo Board we are pleased to announce this industrial investment. Being able to offer power supplies and electronic manufacturing services (EMS) in one package is a game changer in our industry," says Fredrik Berghel Chairman of Inission, in the press release. The directed share issue is part of a comprehensive arrangement to refinance Enedo with EUR 15,4 million in new equity. Enedo intends to invest the raised capital in the implementation of a turnaround program to strengthen the profitability.