GVG Corporate Finance Advisors advise EEMS Group on the divestiture of the assets of the Group’s Chinese subsidiaries EEMS Suzhou and EEMS Technology to Wuxi Taiji Industry Co.

TRANSACTION ANNOUNCEMENT

Wiesbaden, 1 February 2013

EEMS Italia S.p.A. announces that the operation whose guidelines were established in the preliminary agreement between Wuxi Taiji Industry (“Taiji”) Co. and EEMS Suzhou Co. Ltd. (“EEMS Suzhou”) and EEMS Suzhou Technology Ltd (“EEMS Tech”), controlled by EEMS Italia through its subsidiary EEMS China Pte Ltd., was completed.

Among other things this agreement provides for the sale of the assets and part of the liabilities of EEMS Suzhou Co. Ltd. and EEMS Suzhou Technology Ltd. at an initial price of US$ 45 million, subject to an adjustment mechanism based on the results and balance sheet of EEMS Suzhou and EEMS Technology at 31 December 2012.

The operation additionally provides for the setting up of a service supply agreement for the assembly and testing of DRAM memories by EEMS Suzhou on Taiji’s behalf.

The transaction forms part of the complex restructuring of EEMS Italia’s debt, and as already announced has the aim of improving the Group’s current financial condition in a market context which it may reasonably be assumed will be affected in the near future by considerable uncertainty and presumably also by the continuation of the general recession, especially as far as semiconductors are concerned.

Wuxi Taiji Industry Co is a company listed on the Shanghai stock market which does business in a variety of sectors, including textiles and chemical fibres; through the joint venture Hitech Semiconductor Wuxi Co. Ltd. it provides services for the assembly and testing of semiconductor memories.

The EEMS Group is one of the world’s leading operators in assembling, testing and finishing semiconductor memories and - through its subsidiary Solsonica S.p.A. - is active in the manufacture of photovoltaic cells and modules and the development of complete solutions for the design and construction of photovoltaic systems. The Group has its headquarters at Cittaducale (Rieti), Italy and has a significant operational presence in China.

GVG Corporate Finance Advisors has acted as financial advisor to EEMS Italia S.p.A..

Contact Person:
Volker Werner
Partner
GVG Corporate Finance Advisors

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