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2021/09/30

EDOM Technology and Promaster Technology Joint Press Release

EDOM Technology Co., Ltd. (hereinafter referred to as EDOM; TWSE: 3048) and Promaster Technology Corp. (hereinafter referred to as Promaster; TWSE: 3429) respectively held a board meeting today (September 30, 2021) to approve a cash-based share swap. After the completion of this share swap, Promaster will become a wholly-owned subsidiary of EDOM.

 

The consideration for the share swap is NT$18 in cash per share. According to the 20 trading days before the board meeting, the premium is approximately 24.8%. Both parties are expected to hold an extraordinary shareholders meeting on November 18, 2021 to discuss the share swap proposal. Promaster will apply to the Taipei Exchange for the termination of the listing on emerging stock market and the Financial Supervisory Commission to terminate the public offering in accordance with relevant regulations. The record date of this deal is tentatively set as December 30, 2021.

 

EDOM is one of the top 10 semiconductor distributors in the world. We support our customers with exceptional technical support and operational excellence. EDOM deals with key ICs and integrated components sales and services through our well-established logistics system, and provides customers in-depth and real-time technical support. In addition, EDOM has close ties with IC production chain and OEM/ODM manufacturers. Promaster’s products cover three categories: general programmable, wireless communication and multimedia. It specializes in building a competitive advantage in a niche market with high gross profit and high-tech threshold growth.

 

Due to the COVID-19 epidemic worldwide, there are many uncertainties in the electronics supply chain. From the demand side's view, consumers rely more on digital products for remote learning, video conferencing and other functions. Enterprises are moving towards digital transformation. The demand for next-generation data centers and smart devices has greatly increased. The supply side is currently committed to a production capacity planning to achieve a balance between supply and demand. Facing an industrial environment with both challenges and opportunities. Both parties believe that through this merging, EDOM can help Promaster improve their financial and logistical support capabilities. In addition, the product lines and customer bases of the two parties will be integrated to create a closer cooperative relationship with upstream and downstream partners. Give full play to economies of scale and provide complete supply chain services for our vendors and customers. EDOM and Promaster expect that the completion of this merger will have a positive effect on the overall corporate value and shareholder equity of both parties.
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