United Engineers to sell Multi-Fineline Electronix for US$23.95 per share

SINGAPORE - United Engineers Limited is selling its subsidiary Multi-Fineline Electronix to Suzhou Dongshan Precision Manufacturing, it said on Friday (Feb 5).

Nasdaq-listed MFlex, which provides flexible printed circuits and assemblies, will be merged with Dragon Electronix Merger Sub, a unit of Suzhou Dongshan, with MFlex as the surviving corporation.

Each stockholder of MFlex will receive US$23.95 (S$33.48) per share at the closing of the merger.

United Engineers indirectly owns MFlex through WBL Technology (Private) Limited and United WBL Technology.

United Engineers said it supports the merger as it is in line with its strategic review and objective of streamlining activities and businesses across the group.

MFlex on Thursday (Feb 4) posted a fourth quarter net income of US$10.4 million, or US$0.41 per diluted share, down from US$16.0 million, or US$0.65 per diluted share, in the same period last year.

Net sales for the three months ended Dec 31 was US$169.0 million, down from US$210.0 million for the same quarter a year ago. This was due mainly to softness in the tablet and smartphone markets, the firm said.

The lower net sales level resulted in a fourth quarter gross margin of 11.8 per cent, down from 14.5 percent a year ago.