Alltronics Details Rationale and Terms for Majority Stake in Vietnam Electronics Plant

Alltronics Holdings ( (HK:0833) ) just unveiled an announcement.

Alltronics Holdings has provided further details on its acquisition of a 51% equity interest in a Vietnam-based target company, confirming that the transaction will be settled in US dollars, consistent with the contributed capital, despite potential exchange rate fluctuations between the Vietnamese dong and the US dollar. The company explained that the consideration, including a premium over the net contributed capital, reflects the vendor’s successful establishment of licensed production facilities for electronic products in Ho Chi Minh City, with property, plant and equipment valued at about VND31.6 billion, as well as the vendor’s expertise and customer network in telecommunication products, which are expected to form the core of the target company’s output and revenue. The board views the deal as a strategic move to secure its own production base in Vietnam, enhance operational flexibility across Asia and underpin future business growth, and has reiterated its belief that the acquisition terms are fair and reasonable.

The most recent analyst rating on (HK:0833) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Alltronics Holdings stock, see the HK:0833 Stock Forecast page.

More about Alltronics Holdings

Alltronics Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the electronics sector, focusing on the production and supply of electronic and telecommunication products. The group serves international customers and has been expanding its manufacturing footprint across Asia to improve flexibility and better align its production capabilities with changing customer needs.

Average Trading Volume: 547,154

Technical Sentiment Signal: Buy

Current Market Cap: HK$316.9M

See more data about 0833 stock on TipRanks’ Stock Analysis page.