News

Premier Image would merge with Tekom

3/7--Taiwan`s Premier Image Technology Corp., the world`s largest OEM maker of traditional cameras, on Tuesday announced that it would merge with Tekom Technologies Inc. to improve its ability to develop and produce digital cameras. Premier said that the merger would be conducted through a share-swap in which one of its shares would be exchanged for 1.5 shares of Tekom. The merged company will issue 40 million new shares to bring its capitalization to NT$3.25 billion.

Tekom is an OEM/ODM manufacturer specializing in the design and manufacture of image input devices, such as digital cameras and digital video PC cameras. The company had revenue of NT$1.8 billion last year and posted after-tax earnings of NT$1.53 per share. The company produces mainly digital PC cameras and digital cameras with resolutions of 350,000-, 1.3 million, and 2.1 million-pixels. Tekom supplies cameras to Polaroid, Logitech, and other international brands.

According to Premier, the merger with Tekom will strengthen its development and design capabilities as well as round out its product line, especially in the lower-end of the digital camera market.

Premier delivered 11 million traditional cameras and 800,000 digital cameras last year. The company expects the volumes to reach 12 million and 1.3 million units, respectively, this year. The new business is expected to add about NT$4 billion to its revenue this year, up sharply from last year`s NT$1.9 billion and accounting for 32% of the company`s production value this year.

Last Update¡G 06/22/2005 15:03