AYALA-LED semiconductor manufacturer Integrated Micro-Electronics, Inc. (IMI) is selling its Czech Republic manufacturing subsidiary to a unit of China-based Keboda Technology Co., Ltd. for €10.03 million (P636.84 million) as part of its ongoing restructuring and cost-efficiency program.
IMI subsidiary Coöperatief IMI Europe UA signed a share purchase agreement to sell 100% of its shares in IMI Czech Republic (IMI CZ) to KEBODA Deutschland GmbH & Co. KG, subject to post-closing adjustments.
“The move will further reduce overhead and administrative expenses as the company consolidates its operations in Europe into its Bulgaria and Serbia facilities,” IMI said in a regulatory filing on Wednesday.
“This sale was executed as part of IMI’s restructuring and footprint rationalization program which was initiated in the second half of 2024,” it added.
The transaction will be settled in three tranches: €1 million upon signing of the share purchase agreement, €8.53 million upon closing, and €500,000 ten business days after the finalization of the closing accounts.
IMI said it remains fully committed to its customers in the Czech Republic, noting that a majority of those previously served by IMI CZ have already been transitioned to its facilities in Serbia and Bulgaria.
The company said it will ensure uninterrupted service for remaining customers until they are relocated to other IMI sites or until their products reach end-of-life, under a manufacturing services agreement with Keboda that is included in the share purchase agreement.
The transaction will be completed once conditions precedent are fulfilled, including governmental approvals, settlement of financing agreements, completion of business carve-outs to other IMI European sites, and execution of the manufacturing services agreement between IMI and Keboda.
IMI has been optimizing its global footprint through the closure of facilities in California, Malaysia, Singapore, Japan, and Chengdu.
For the first quarter, IMI reported a $3.3-million net income, reversing a $3.7-million net loss in the same period last year, driven by cost rationalization measures.
Founded in 2003, Keboda is a Shanghai-headquartered, China-listed company that provides system solutions for automotive intelligent and energy-efficient electronic components.
IMI shares rose by 0.92% or two centavos to P2.20 apiece on Wednesday. — Revin Mikhael D. Ochave