ASIAN TECHNOLOGY NEWSLETTER

JUNE 2008, ISSUE 55

A Quarterly newsletter of developments in the IT, semiconductor and electronics industries

We hope you find the Asian Technology If you think that BDA’s services may CONTENTS Newsletter informative. be useful to you, please contact us at any one of our offices or email me at CHINA...... 1 BDA is an investment bank which assists [email protected]. Contact details HONG KONG...... 2 multinational clients to identify, assess for our offices are at the back of this ...... 2 and execute cross-border transactions newsletter. We look forward to speaking JAPAN...... 3 involving Asia, including acquisitions, with you in the future. KOREA...... 4 divestments, JVs, restructuring and MALAYSIA...... 5 capital raising. We have offices and professional staff throughout Asia, the Andrew Huntley, Senior Managing Director PHILIPPINES...... 5 Middle East, the US and UK. [email protected] ...... 5 TAIWAN...... 5

China Cisco has announced it will invest Taiwanese electronics subsidiary US$16bn in China in the next five of Pou Chen Corp, the Taiwanese China Telecom Corp, the fixed- years. It will immediately invest footwear and electronic company, for line operator and parent of China US$20m for a research academy with US$60m. Pou Chen Corp is divesting Telecom, will acquire China Unicom’s Guanghua School of Management of Yuansheng Electronics to focus on CDMA network and business Peking University to train Chinese other regions in China. May 23, 2008 RMB110bn (US$15.8bn) in cash. officials and entrepreneurs. It will China Unicom in turn will acquire also invest US$350m on Chinese Smiths Group plc, a UK technology fixed-line operator China Netcom small and midsize enterprises and company, has acquired Allrizon- Group Corp (Hong Kong) Ltd in a set up 300 network technology Tongguang Communications share swap valued at HK$439bn academies in the advanced Equipment (Allrizon-TG), a Chinese (US$56bn). The moves are part of a occupational schools in Central and communications equipment firm, government-mandated restructuring Western China. April 21, 2008 from Tongguang Group (TG Group), of the sector unveiled in May. a Chinese supplier of fiber optics The plan called for the country’s Infovision Optoelectronics cables and devices, and Allrizon six telecos to merge into three (Kunshan), a Chinese LCD panel Communications Corp, a US-based groups in a bid to create a more manufacturer, has agreed to acquire supplier of electronic components, competitive telecom industry and Yuansheng Electronics (Kunshan), for an undisclosed consideration. prevent a dominant operator from a China-based LCD manufacturer, The acquisition of Allrizon, which monopolizing the market. June 2, 2008 from Make it Investments, a recorded revenues of US$11m in 2

ASIAN TECHNOLOGY NEWSLETTER JUNE 2008, ISSUE 55

2007, will expand the manufacturing corporations with global delivery capabilities of Smiths Interconnect, India requirements. Cognizant and the microwave business division of 3i Infotech, India’s fourth largest Deutsche Telekom expect to generate Smith Group. May 13, 2008 IT product and services company, US$40m in the first year of the has acquired Regulus Group, the US partnership. March, 5 2008 Actis, a UK-based PE, and a group provider of remittance services and of investors have sold their minority document processing services, for Educomp Solutions, a Indian IT interest in Jiangsu Shunda Holdings US$80m. As part of the agreement, learning company, has agreed to Co Ltd to Suntech Power Holdings, 3i Infotech will also pay US$20m acquire a 51% stake in Learning. also a portfolio company of Actis. in earnouts to Regulus, subject to com, the US provider of web- Suntech, a leading manufacturer of performance parameters. Regulus delivered curriculum and assessment photovoltaic cells and modules, paid employs 1,300 people and generated solutions, for US$24m. Learning.com US$100m for the stake. June 5, 2008 revenues of US$148m in 2007. April has two million students in the US 29, 2008 and is active in the pre-high school market. The acquisition will provide Accentia Technologies, an Indian Educomp distribution access to over Hong Kong provider of BPO services, has 800 districts. May 20, 2008 CDC Software Holdings, a US acquired Oak Technology, the provider of enterprise software US company engaged in the Goldstone Infratech, an Indian applications and subsidiary of development and implementation of polymer insulators company, has CDC Corp, the Hong Kong provider software and services for hospitals agreed to set up an Indian solar of enterprise software, mobile and health care organizations, for an panel JV with Jusung Engineering applications and internet media, undisclosed consideration. Accentia Ltd, a Korean equipment supplier. has agreed to acquire a 51% stake intends to hire 5,500 employees Goldstone will hold a 54% stake in Integrated Solutions Ltd (ISL), a by the end of 2008 to meet its while Jusung Engineering and June Hong Kong developer of enterprise increasing order book pipeline. April Min, its founder, will hold 46%. The software applications for discrete 1, 2008 parties will invest an initial INR6bn manufacturers, for an undisclosed (US$140m) for the first fab that will consideration. March 4, 2008 Cognizant Technology Solutions, produce thin-film photovoltaic panels a US software solutions company, at an initial capacity of 350MWp. The HKC (Holdings) Ltd, a Hong Kong has agreed to acquire the total project cost will reach INR28bn construction company, has agreed Indian operations of T-Systems (US$650m) within five years. April 28, to acquire a 75% stake in J.I.C. International, the German provider 2008 Technology (JIC), a Hong Kong of computer services and software manufacturer of LCD panels and LCD solutions and a subsidiary MindTree, an Indian IT company, has modules, from Nam Tai Electronics, of Deutsche Telekom, for an agreed to acquire 52.6% of Aztecsoft, a listed Hong Kong provider of undisclosed consideration. The an Indian ERP solutions provider electronic components and design acquisition is part of a five-year to independent software vendors services, for a cash consideration of systems integration partnership and technology service providers, HK$397m (US$51m). March 3, 2008 aimed at serving European from e4e Holdings, a Mauritian 3

ASIAN TECHNOLOGY NEWSLETTER JUNE 2008, ISSUE 55 technology company, and Canaan will increase Reliance’s revenues by from its profitable broadband and Partners, a US private equity firm, US$365m. May 26, 2008 mobility solutions businesses. May for a consideration of US$47m. Post 24, 2008 acquisition, MindTree will have more Reliance Communications is in than 2,000 testing services teams. discussions on a reverse takeover May 2, 2008 of South Africa-based MTN Group Ltd, Africa’s largest mobile operator. Japan Reliance Big Entertainment, an However, a spat between the Ambani Indian entertainment division of brothers who separately control US consulting firm Accenture has Reliance ADAG Enterprises, the Reliance Communications and agreed to acquire Sopia Corp, the Indian conglomerate, has acquired Reliance Industries is imperiling Japanese IT solutions provider, DTS Digital Images from Digital the talks. MTN reported revenues for an undisclosed consideration. Theatre Systems (DTS), a US-listed of US$11bn and has 68 million Sopia generated revenues of ¥5.4bn provider of audio technology, for subscribers in 2007. Reliance has 46 (US$50m) in 2007. April 3, 2008 US$7.5m. DTS is a US technology million subscribers and had revenues developer and service provider that of close to US$5bn in the year to Hitachi, a listed Japanese electronics restores and enhances movies. April March 31. May 27, 2008 company, has acquired a majority 8, 2008 stake in M-Tech Information Ubisoft Entertainment, a French Technology, a Canadian provider Reliance Communications, formerly producer, publisher and distributor of identity management software Reliance Infocomm, has acquired of interactive entertainment and services, for an undisclosed a 90% stake in eWave World, a software, has agreed to acquire the consideration. The acquisition UK telecom operator focused on Indian video game development adds M-Tech’s identity management wireless telephony services, for an studio of Gameloft, a French software and services to Hitachi’s estimated consideration of US$110m. publisher and developer of video information security solutions Reliance Communications is India’s games for mobile phones, for an portfolio. Post acquisition, M-Tech second-largest mobile operator. undisclosed consideration. The will be renamed Hitachi ID Systems Post acquisition, Reliance will invest Indian unit of Gameloft employs 120 Inc. April 7, 2008 US$500m in eWave to build and developers and testers, and would acquire WiMax networks in emerging reach a headcount of 200 in 12 Hitachi Cable, a Japanese markets in Asia, Europe, Latin months. The transaction is expected manufacturer of electrical wires and America and Africa. April 24, 2008 to be completed by Q3 2008. April 15, electronic equipment, has agreed 2008 to pay ¥6bn (US$61m) to acquire Reliance Communications has the chip on film (COF) substrate acquired the global managed network Videocon, an Indian consumer business of Casio Micronics, the service provider Vanco, for US$77m. electronics major, claims to be in Japanese maker of electronic parts UK-based Vanco derives 90% of its talks to acquire the handset business and a subsidiary of Casio Computer. revenues from the US, UK, Germany of Motorola, whose 15% share of the The acquisition will enable Hitachi and France and was put on the block mobile handset market is valued at Cable to grow its semiconductor TAB as a part of a restructuring program US$3.8bn. Motorola has decided to (tape-automated bonding) business by its creditors. The acquisition separate its loss making handset unit by using the excess COF production 4

ASIAN TECHNOLOGY NEWSLETTER JUNE 2008, ISSUE 55 capacity. The COF business of Casio has agreed to acquire a 43.8% new sixth-generation line will have Micronics will be renamed Hitachi stake in Wintest Corp, the Japanese monthly capacity of 60,000 units Cable Films Devices Ltd. March 28, testing equipment developer, for and mainly produce panels for 2008 ¥800m (US$8m) through a private monitors and notebook screens. LG placement. April 7, 2008 is reducing television-panel output Oki Electric Industry will sell a 95% by switching several LCD lines to stake in its chip-making operations Tamura Corp, a Japanese information produce information-technology to Rohm, a Kyoto-based maker equipment, electronic components, panels, because some of its TV-panel of integration chips, for ¥86bn electrochemical materials and clients are experiencing weakening (US$825m). The disposal springs soldering equipments maker, has demand. LG Display’s major TV-panel from growing competition faced by acquired a 52.3% stake in Koha customers include LG Electronics, smaller players in the semiconductor Co, the Japanese maker of applied Philips Electronics, Vizio and sector, pushing these players optical products including LEDs, for Toshiba. May 19, 2008 to merge and consolidate their a consideration of ¥4.3bn (US$43m). operations. May 29, 2008 May 1, 2008 Phoenix PDE, a Korean manufacturer of electronics parts, has acquired SBI Holdings, a Japanese VC firm Ilchang Precision, the Korean and provider of financial services, semiconductor memory heat sink has agreed to acquire a 39.7% stake Korea module maker, for a consideration in Broadmedia Corp, a Japanese Asahi Glass, a Japanese LCD glass of KRW20bn (US$21m). In 2007, IT company, for a consideration of substrate manufacturer, will acquire Ilchang Precision posted revenues of ¥3.5bn (US$34m). Broadmedia Schott Processing Korea Co Ltd KRW15bn (US$16m). March 16, 2008 intends to use the proceeds from (SPK), a wholly owned Korean the sale to pursue more M&A subsidiary of Germany’s Schott Samsung Electronics of Korean opportunities and repay debt it AG engaged in polishing large has acquired Clairvoyante, the incurred from the acquisition of glass substrates for TFT-LCD’s. US developer of PenTile subpixel Broadmedia Studios in October 2006 The acquisition is valued at ¥5bn rendering technology for flat panel and Gameon in June 2007. May 16, (US$48m). Asahi Glass has two LCD displays and monitors, from US VC 2008 glass substrate facilities in Korea firms American River Ventures, Intel with combined capacity of 5 million Capital, Selby Venture Partners, Softbank Corp, a Japanese m2 and needs to polish the glass Pacifica Fund, Rocket Ventures, The technology conglomerate, substrates in order to ship them as Halo Funds Management Company, has acquired a 38% stake in final products. With this acquisition, The Angels’ Forum, and Japanese PE LocationValue, a Japanese provider it will take advantage of Schott firm Yasuda Enterprise Development, of Internet services for cellular Processing Korea’s capabilities. May for an undisclosed consideration. phones, for ¥850m (US$8.4m). April 16, 2008 Post acquisition, Clairvoyante will 14, 2008 be dissolved and a new entity, LG Display plans a W1tn (US$960m) Nouvoyance, will be formed to push Takatori Corp, a Japanese LCD production line that likely will forward PenTile technology. March 25, semiconductor chips and textile begin operations in Q2 2009. The 2008 manufacturing equipments maker, 5

ASIAN TECHNOLOGY NEWSLETTER JUNE 2008, ISSUE 55

Malaysia Ltd by offering US$576m for the Singaporean disk-drive-component Taiwan Germany’s Q-Cells AG, the world’s maker. This is the second move by ADLINK Technology, a Taiwanese leading photo-voltaic company and KKR in the Singapore disk-component manufacturer of measurement, largest manufacturer of solar cells, industry, following its takeover of automation products, communication will invest RM5bn (US$1.6bn) in Unisteel rival, MMI Holdings Ltd, in and computer products, has agreed Malaysia to produce solar cells for July 2007. KKR said it intends to keep to acquire Ampro Computers, a the global market. Q-Cells will build Unisteel’s management in place and US supplier of innovative modular a manufacturing complex on a 150- to grant members shares. June 9, 2008 embedded computing solutions, hectare site in the state of Selangor, for US$20m. Ampro’s strengths in with expected total capacity of more RCG China Holdings, a subsidiary design, R&D, and manufacturing than 300 peak megawatts (MWp). of RCG Holdings, a UK biometric of rugged embedded computing The company plans to produce more and radio frequency identification solutions is in line with ADLINK’s than 1.5 peak gigawatts (GWp) of security company, has agreed to current strategic focus. March 20, 2008 solar cells in 2010, which will be acquire a further 40% stake in four times its production output in Vast Base Technology, a Singapore Hynix Semiconductor of Korea has 2007. The main markets for Q-Cells provider of RFID technologies for agreed to acquire 640 million shares products are Europe, Japan, Korea, US$54m in cash. RCG’s stake in in Taiwan’s ProMOS Technologies and the US. June 3, 2008 Vast Base will increase to 60%. The for NT$5.1bn (US$167m). The acquisition is expected to provide a shares account for 9.5% stake net cash flow of US$15m for RCG by in ProMOS which meets the limit Q2 2009. May 16, 2008 imposed by the Taiwan authorities Philippines who allow overseas semiconductor Smart Communications (Smart), a Samsung Electronics and Germany’s manufacturers to hold as much as Filipino wireless services provider Siltronic have opened a US$1bn, 10% in local chip makers. Hynix and subsidiary of Philippine Long 300mm silicon wafers JV facility will reportedly transfer its next- Distance Telephone, a Filipino in Singapore, Siltronic Samsung generation 54-nm DRAM production telecom services provider, has Wafer. The JV is expected to reach a technology to ProMOS, so that acquired PH Communications monthly capacity of 300,000 wafers ProMOS may start production as early Holdings Corp and Francom Holdings by 2010. The facility, Samsung’s as December 2008. June 19, 2008 Inc (CURE), a Filipino holding first wafer production site outside company of Connectivity Unlimited Korea, will supply the company’s Micron Technology, a US provider of Resource Enterprise, a Filipino internal needs as well as customers advanced semiconductor solutions, telecom services provider, for a in the US, Japan, and Europe. The and Nanya Technology, a Taiwanese consideration of Php420m (US$10m). 300mm wafers are currently the manufacturer of semiconductors, April 28, 2008 most advanced and largest diameter have agreed to form a 50:50 JV called silicon wafers in commercial mass MeiYa Technology Corp. Micron production. June 19, 2008 Technology and Nanya will contribute US$550m in cash by the end of 2009 Singapore and as well as technology. The JV will Kohlberg Kravis Roberts won the manufacture dynamic random access bidding for Unisteel Technology 6

ASIAN TECHNOLOGY NEWSLETTER JUNE 2008, ISSUE 55 memory (DRAM) semiconductor systems and semiconductors. With (US$300m). The digital display devices. The JV is expected to be this acquisition, Novas will become business of Lite-On Technology complete by Q3 2008. April 21, 2008 the largest EDA company in Asia. generated revenues of NT$82.7bn April 1, 2008 (US$2.5bn) in 2007. The transaction SpringSoft, a Taiwanese supplier of is expected to be complete by Q3 electronic design automation (EDA) Wistron Corp, a Taiwanese 2008. April 29, 2008 software and provider of technology manufacturer of computers and consulting services, has agreed to IT-related products, has agreed pay US$29m to acquire the remaining to acquire the digital display stake of Novas Software, a US business of Lite-On Technology, a To submit stories to the Asian Technology provider of design comprehension Taiwanese manufacturer of electronic Newsletter, please contact Diwakar Mitr and automated debug solutions for goods and computer peripherals, in at (91) 22-2643-0290 or email engineers of complex ICs, embedded for a consideration of NT$9.2bn [email protected].

Business Development Asia is an NEW YORK investment bank which assists Euan Rellie, [email protected] Andrew Huntley, [email protected] Charles Maynard, [email protected] Business Development Asia Ltd multinational companies in Business Development Asia LLC 10 Crown Place expanding their businesses in The Economist Building, 11th Floor Clifton St 111 West 57th St, New York, NY 10019 London, EC2A 4FT, United Kingdom Asia through JVs, acquisitions, T (212) 265-5300 T (44) 20-7655-3500 divestments and capital raising. F (212) 265-4300 F (44) 20-7655-8913 For further information on BDA’s BAHRAIN MUMBAI services or on any of the articles in Tamer Makary, [email protected] Rohit Singh, [email protected] this newsletter, please contact the Business Development Asia Business Development Asia 2119 Al Moayyed Tower 898 Notan Plaza, Suite 4A offices below. Seef District Turner Road, Bandra (West) , Bahrain Mumbai 400050, India T (973) 17567914 T (91) 22-2643-0290 F (973) 17567901 F (91) 22-2643-0291

HONG KONG SHANGHAI Paul DiGiacomo, [email protected] Jeff rey Wang, [email protected] Business Development Asia (HK) Business Development Asia Co Ltd #1206 Lippo Centre, Tower 1 The Center, #1602, 989 Changle Road 89 Queensway, Hong Kong Shanghai 200031, China Andrew Huntley, T (852) 2537-9565 T (86) 21-5407-5580 Senior Managing Director F (852) 2537-4406 F (86) 21-5407-5680 [email protected] SEOUL TOKYO Hans Kim, [email protected] Yuuichiro Nakajima, [email protected] Diwakar Mitr, Associate Business Development Asia Business Development Asia K.K. #1201, Gwanghwamun Offi cia 4F, T3 Gates [email protected] 163 Sinmunno 1-Ga, Jongno-Gu 3-8-25 Toranomon, Minato-ku Seoul 110-999, Korea Tokyo 105-0001, Japan www.bdallc.com T (82) 2-3276-3150 T (81) 3-3433-5803 F (82) 2-3276-3155 F (81) 3-3433-5269 [email protected]