WPG (TWSE:3702) Reports WPG Holdings Limited's subsidiary, Silicon Application Corp., further expands its business in the distribution of passive components

2023/01/17

To further expand the business of passive components, as approved by the audit committee and the board of directors of WPG Holdings Limited, Silicon Application Corp. (hereinafter “SAC”), a subsidiary of WPG Holdings Limited, held the board of directors meeting today (Jan 17, 2023) and resolved to acquire the shareholding of group companies of VSELL group (an electronic components distributor, hereinafter “VSELL”) and certain operating assets of VSELL at the aggregate consideration in cash of NTD 650 million, and will further contribute in cash to such group companies to enrich their working capital. After the abovementioned investment, WPG group shall further thrive in the business of passive components in Greater China.

The transaction is commenced with a key strategy to integrate the remarkable management teams of SAC and VSELL and enhance the overall industrial competitiveness, thereby optimizing the complementary product profiles, so as to further expand SAC and VSELL’s overall business in the distribution of passive components. VSELL was incorporated in 1994. The annual turnover of VSELL in 2022 exceeded NTD 3,000 million, with headcount of around 64 employees. VSELL has been devoted into the distribution of passive components and has a competitive edge in developing design-in businesses in Greater China with a diversified product profile in connectors, cables, fasteners, and electromagnetic shielding materials. With the integration of both management teams of SAC and VSELL and the working capital contributed by SAC, VSELL shall be rendered a capacity for a larger business scale; whereas SAC shall obtain market accesses into the distribution of automobile connectors and further diversified the product pipelines of WPG group.

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