ASIAN TECHNOLOGY NEWSLETTER

DECEMBER 2007, ISSUE 53

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 CHINA...... 1 any one of our offices or email me at BDA is a corporate finance and advisory [email protected]. Contact details HONG KONG...... 3 firm, which assists multinational clients for our offices are at the back of this INDIA...... 3 to identify, assess and execute cross- newsletter. We look forward to speaking JAPAN...... 5 border transactions involving Asia, with you in the future. KOREA...... 5 including acquisitions, divestments, JVs, MALAYSIA...... 6 restructuring and capital raising. We have SINGAPORE...... 6 offices and professional staff throughout Andrew Huntley, Managing Director Asia, and in the US and UK. [email protected]

China Checkpoint, the US-based provider Dynasty Gaming, the Canada-based ADC Telecom, the US-based of shrink management solutions developer online gaming software telecom software and equipment for the retail industry, has acquired and e-commerce consulting, has manufacturer, will acquire Century SIDEP, the China-based provider of agreed to acquire China-based Man Communication, the China- Radio Frequency Electronic Article Junnet Omnimedia, a digital media based provider of communication Surveillance (RF-EAS) products, along distributor, and Beijing Baihui distribution frames and accessories with its majority-owned subsidiary, Digital Stars, a digital tech support for US$55m in cash and up to Shanghai Asialco Electronics, China- provider, from private investors, Dr. US$15m in earn out payments over based manufacturer of RF-EAS labels, Wilson Cho and Dr. Dominic Chan, for the next three years. Century’s major for US$37m. The two acquisitions will a total of US$80m.The acquisition is clients include the mobile operators facilitate Checkpoint’s penetration in part of Dynasty’s strategy to focus on like China Mobile, China Netcom, emerging Asian markets and increase the Chinese market. The transaction China Telecom, China Tietong, its label manufacturing capacity is expected to close by end of 2007. and China Unicom, and OEMs like to meet growing demand in the October 19, 2007 UTStarcom and ZTE. The acquisition region. The transaction is expected will accelerate ADC’s growth in China to be EPS neutral and add US$20m Ferro Corp will begin construction in by expanding product offerings and to Checkpoint’s revenues in 2008. Q4 2007 on a 16,500 square meter adding more low-cost manufacturing November 20, 2007 facility in Suzhou, China, where facilities. The transaction is expected it will produce aluminum pastes to close by year end. November 13, 2007 for the Southeast Asia solar cell 2

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53 manufacturing market. The new site Capital, the global investment Samsung Electronics Co is is expected to begin production in arm of Intel, has invested US$10.5m considering moving its local liquid Q3 2008 and will include expansion in the China-based automated crystal display component production capacity to accommodate expected technology company SUPCON Group, line to Mainland China in 2008. The growth of Ferro Electronic Material which specializes in distributed move aims to raise the number of Systems’ business positions in China control systems. SUPCON has over LCD assembly lines in Korea, in a bid and Asia for products such as silver 5,000 clients in petrochemical, to meet the increasing demand for pastes, surface technology products, chemical, power and food processing the products. The company owns two multi-layer materials, electronic sectors. SUPCON will assist Intel in LCD module plants, which are located glass, and precious metal powders. the development and promotion of in Chonan in middle Korea and October 9, 2007 Intel’s industrial automation solution Suzhou in east China, respectively. products in China, while Intel will The latter is mainly devoted to the Glu Mobile (“Glu”), the US- support SUPCON’s global production labor-intensive work and the former based mobile games developer and sales to expand business is to turn to a technology-intensive and publisher acquired Beijing outside China. November 1, 2007 facility. Samsung Electronics plans Zhangzhong Mig Information to move most of the LCD module Technology (“MIG”), a Chinese Zip disk drive maker Iomega Corp production lines to the mainland, mobile games developer and will acquire China’s ExcelStor East Europe, India, and other low publisher, for US$39.7m, inclusive Group from a shareholder of the cost countries. December 10, 2007 of earn outs. Glu will pay US$14.7m San Diego company in an all-stock in cash with earn out up to US$25m deal that will more than double Sitronics JSC, the Russia-based in cash and stock contingent on the number of its outstanding manufacturer of consumer MIG’s earnings in 2008. Through this shares. Financial terms of the deal electronics and a subsidiary of acquisition Glu hopes to enhance its were not disclosed. Beijing-based Russian conglomerate AFK Sistema presence in the mobile game market ExcelStor is a subsidiary of Iomega Group, has acquired a 66% stake by helping MIG to expand further into shareholder Great Wall Technology in Sitronics-ZTE, the China- mobile games publishing. Co Ltd and Great Wall Technology, based manufacturer of consumer November 29, 2007 in turn, is an indirect subsidiary of electronics, from ZTE Corporation, China Electronics Corp, a Chinese the China-based manufacturer of Chinese TV maker Hisense Electric government-owned conglomerate. telecom equipment, for US$10m. Co Ltd plans to raise roughly Iomega will issue about 84 million Sitronics’ strategy is to manufacture Rmb1bn (US$135.6m) through a shares of its common stock in and market household consumer private share placement of up to 100 exchange for all outstanding shares electronic products in China at low million shares to selected investors. of ExcelStor. When the deal closes, costs. October 5, 2007 Rmb700m (US$95m) will be invested Great Wall Technology will hold a in the company’s five LCD module majority stake in Iomega owning Spreadtrum Communications, the production lines of 15-inch LCD about 43% of Iomega’s common China-based wireless chip designer, modules and 42-inch LCD modules. stock. Following the acquisition, will acquire Quorum Systems, the One will start production in 2007 with ExcelStor will operate as a wholly San Diego-based designer of CMOS a production capacity of 500k, two owned subsidiary of Iomega. radio transceivers, for US$76m. in 2008 with 1.5 million and two in ExcelStor had US$707m in revenue Quorum’s CMOS RF transceivers will 2009 with 3 million. December 13, 2007 for 2006. December 12, 2007 complement Spreadtrum’s baseband 3

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53 technology and allow them to make Yangtze Telecom, the Canada-based consideration of US$86m. Aspocomp further inroads into the wireless telecommunication services provider agreed to contribute equipments market. There is speculation that to China and Mongolia, has agreed from its Salo plant and Meadville will China will announce 3G licenses, to acquire Hunchun VAS (HCVAS), acquire a 10% stake in Aspocomp‘s which would benefit Spreadtrum and the Jilin-based company engaged in Oulu subsidiary as part of the deal. the development of the TD-SCDMA 3G commercialization of technologies The transaction will help Aspocomp standard in China. November 20, 2007 in mobile VAS space, for US$4.8m in to improve its liquidity position by stock and earn-out payments of up to repaying its liabilities. November 8, 2007 Sumitomo Chemical will start US$24m based on HCVAS earnings manufacturing liquid crystal in 2008 and 2009. HCVAS owns two polymers intended for connectors patents in China: a push-to-talk (PTT) India and backlight bobbins in China in technology over cellular (PoC) and a January 2009. The company plans mobile phone controlled biometric unveiled its to construct a 1,800 tpa tail-end technology in security systems. “Globalization Center East” campus solid-phase polymerization facility Yangtze’s acquisition of HCVAS is a in Bangalore. The company, for LCP neat resin and a 2,400 tpa step towards its goal of becoming the which spent some US$50m on compounding facility at Sumika first PoC provider in China. the new 1-million-square-foot Electronic Materials (Wuxi), Jiangsu December 3, 2007 center, now employs some 3,000 Province. Aside from an investment people in India. According to of a total of Y3bn (US$25m) for the Cisco, the campus also houses project, the company is also planning Hong Kong the largest campus datacenter a 2,200 tpa output capacity increase outside the US, and will provide to 3,200 tpa for neat resin at Taoka Li Ka-Shing, the Hong Kong owner a focal point for demonstrating Chemical, Japan. The added capacity of Tom Group, invested US$60m next-generation virtualization is scheduled to be completed by end in Facebook for 0.4% stake, with technologies and service oriented of 2008. October 18, 2007 the option to invest an additional network architectures. Cisco also US$60m in the company. The announced that it is extending Symbian, the UK-based Smartphone investment is part of Li’s strategy venture investment initiative in India operating systems company owned to forge closer relations between by another US$100m. As the first of by Nokia, Ericsson, Siemens, Sony Facebook and Tom Group. It also several potential initiatives, Cisco is Ericsson, Panasonic and Samsung, gives Facebook an entry into the fast- collaborating with Satyam Computer has acquired Chinese smartphone growing advertising market in China. Services to explore a new venture developer Beijing Genesis December 3, 2007 investment that will purportedly Interactive Technology for an focus on “optimizing, deploying undisclosed amount. The acquisition Meadville Group, the Hong Kong- and managing integrated healthcare will play a key role in Symbian’s based manufacturer of PCB products, management solutions globally.” global R&D strategy and enhance the has agreed to acquire an 80% November 5, 2007 development of its operating system. stake in the Chinese and Indian Beijing Genesis will become part subsidiaries of Aspocomp Group, Cognizant Technology Solutions, the of Symbian’s Chinese subsidiary, the Finland-based developer of Nasdaq-listed Indian IT company, Symbian Software Beijing Co interconnection solutions for the has agreed to acquire MarketRx, the Limited. November 19, 2007 electronics industry, for a total India-based analytics provider for the 4

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53 pharmaceutical and biotech industry, the multiple of 1 times the revenues startup specializing in databases for a cash consideration of US$135m. of the acquired businesses). These and enterprise software, for an MarketRx has revenues of US$40m, acquisitions will help Core Projects to undisclosed consideration. The 120 430 employees spread across the US, expand its operations in UK and USA employee strong Yasu had revenues India and Europe, and is backed by and also add more than 12 products of US$10m in FY07. The acquisition, PE funds Sequoia Capital India and to its existing portfolio along with SAP’s first in India, will help SAP Andwel Partners. The acquisition cross selling opportunities. enhance its business process will expand Cognizant’s life science September 26, 2007 management offerings. October 19, 2007 offerings, giving it 75 life sciences clients, including four of the top five Genpact, the Indian BPO major, has Russian telecom major Sistema global biotech companies. agreed to acquire a 90% stake in Group, has agreed to acquire a 10% October 20, 2007 Citigroup Global Services (“CGS”), stake (with an option to increase it the captive BPO arm of Citigroup, to 51%) in Indian telecom operator Cookson Electronics, an electronic for US$630m. The acquisition will Shyam Telelinks, part of the Indian materials company of the US, opened enable Genpact to increase its scale telecom equipment major Shyam a R&D center in Bangalore with an in the BPO space with the addition of Telecom, for US$11.4m, thereby investment of US$10m. This is the 10,000 CGS employees. implying an EV of US$114m. Shyam company’s fourth R&D center in the October 26, 2007 Telelinks has 270,000 subscribers world. Its other three R&D facilities and is active in the Indian state of are in Japan, Singapore and the Hero Group, the India-based Rajasthan. Shyam Telecom will use US. The new center will focus on automotive group, has acquired the proceeds from the stake sale to new materials, components and Telecom Service Centres (TSC), the finance its pan-India expansion into technologies for the electronic, Scottland-based telecom servies mobile services. The acquisition manufacturing, assembly and group that offers web-enabled will enable Sistema to tap into the packaging industries. October 27, 2007 contact services and e-business world’s fastest-growing mobile phone solutions, from Lloyds TSB Group, market. September 26, 2007 Core Projects & Technologies, the the UK-based PE firm, for a total Indian software company, has agreed consideration of £40m (US$81m). TietoEnator, the Finland-based to acquire Azzurri Communications, TSC generated revenues of US$100m IT services provider, has agreed the UK-based provider of technology and operating profit of US$7m in to acquire Fortuna Technologies solutions in the education domain, 2007. Post acquisition, TSC will be (“India”), the Indian wireless for an undisclosed consideration. In merged with Hero Group’s BPO arm, embedded software services related transactions, Core Projects Hero ITES, and will be renamed as and solutions provider, for an signed an agreement to acquire TSC Hero. Hero’s expansion strategy approximate consideration of Hamlet Computer Group, the UK- is to strengthen its position in the (US$29m). The acquisition will based provider of software solutions, European, Asian and the US markets enable TietoEnator to expand its for an undisclosed consideration, by diversifying the service portfolio presence in the Asian market, and has acquired KC Management, of TSC Hero. October 9, 2007 add US$14m to its revenues in the US-based software company, for 2008 and will give Fortuna access an undisclosed consideration. The German enterprise software to TietaEnator’s client base and deal value of the three acquisitions maker SAP has acquired Yasu additional R&D capabilities. is estimated to be US$45m (based on Technologies, the Indian software September 17, 2007 5

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53

WPP Digital, the digital arm of Eurotech, the Italian provider of world’s second largest ad agency embedded computer technology, Korea WPP, has acquired a 75% stake in has agreed to acquire a 65% stake in CoorsTek broke ground on a newest Quasar Media, the Indian online Advanet, the Japanese manufacturer technical ceramics manufacturing media buying company, for an of single board computers, I/O, data facility in Korea. Significant increases undisclosed consideration. Quasar acquisition, and communication in demand for high-purity and other also offers digital media, creative, e- products for the embedded specialty ceramics, primarily for the business solutions, search marketing markets, for a cash consideration of semiconductor manufacturing and and optimization, mobile marketing, ¥7.6bn (US$65.7m). As part of the flat-panel display industries, fueled ecommerce, social media and e-CRM. transaction, Eurotech also has an the additional facility. The new Its clients include LG Electronics, option to acquire the remaining 35% facility, located in Gumi City, will be , Monster.com, VISA, stake in Advanet. The acquisition will more than three times larger than Motorola, and Airtel. The acquisition help Eurotech to enter the Japanese their current location in Kyungbook will enable WPP Digital to make markets and expand its presence in to accommodate the continued inroads into the digital advertising the Asian markets. The transaction growth expected in the sector. The market in India which is expected will allow Advanet to grow by new facility is located near customers to reach US$560m in size by 2009. expanding its business outside the like Samsung, LG Phillips LCD, Hynix, November 19, 2007 Japanese market. October 4, 2007 and Magnachip Semiconductor. October 22, 2007 TDK Corporation, the Japanese Japan manufacturer of electronic and KT Corporation, the Korean digital recording media, has acquired fixed line telecom provider, and Columbia Music Entertainment, the remaining 41.9% stake not held Sumitomo Corporation, the Japanese the Japanese music production in Densei-Lambda, the Japanese conglomerate, has acquired a 100% company, has agreed to acquire provider of switching power supplies, stake in Super iMax, the Uzbekistan- 100% stake in TDK Core Company, at an offer price of US$14.9 per based wireless broadband services the Japanese game software share for US$136m valuing the provider and an 84% stake in developer, from TDK Corporation, the entire company at US$326m. TDK East Telecom, the Uzbekistan- Japanese manufacturer of electronic had bought a 58.1% stake in Densei- based digital communications components and ICs, wireless Lambda in July 2005 from Invensys services provider, for an aggregate computer networking products, plc, the UK-based provider of consideration of US$70m. KT magnetic heads for HDD, digital automation, controls and process acquired a 51% stake in East Telecom recording hardware and advanced solutions. The acquisition is in line and a 60% stake in Super iMax while digital recording media, for US$13m. with TDK’s strategy of restructuring Sumitomo has acquired a 34% stake The acquisition complements its business in order to strengthen in East Telecom and a 40% stake in the music software technology of its position in the power supply Super iMax. The transaction will give Columbia Music Entertainment, market and to make its power supply KT upward momentum in its foray while helping its growth in the business more competitive and into strategic overseas markets such development of game and education profitable. September 26, 2007 as Central Asia. October 30, 2007 software. September 28, 2007 Samsung Electronics has acquired TransChip, the Israel-based 6

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53 developer of CMOS imagers, for a customer royalties by offering Manipal Universal Learning consideration of roughly US$70m. bundled services of mobile, fixed- International, part of India-based Samsung will continue to employ line, broadband internet, and Manipal Education Group, has agreed TransChip’s 60 research personnel at internet TV services. December 4, 2007 to acquire a 50% stake in U21Global, its new Samsung Semiconductor R&D the world’s premier online graduate Center in Israel. The acquisition will school, by purchasing the holding of enable Samsung to enhance its non- Malaysia Cengage Learning (formerly Thomson memory chip business and is in line Learning) for an undisclosed with its strategy of growth-through- GTL, the India-based network consideration. U21Global launched acquisitions. October 31, 2007 services provider, has agreed its flagship international MBA to acquire ADA Cellworks, the program in 2003 and currently SAFC Hitech, the custom Malaysia-based provider of radio and enrolls 4,000 students from over manufacturing and services group transmission planning and network 60 countries. The acquisition will within Sigma-Aldrich Corp, has services, for a cash consideration of expand Manipal’s brand portfolio entered into an agreement with US$25m. ADA Cellworks, a company and offer significant growth the Gyeonggi Province to explore of 750 employees, is expected opportunities in the fast-growing the possibility of building a facility to clock revenues of US$31m online education segment. BDA in the province to supply and in 2007 and is backed by Intel was the exclusive financial advisor manufacture electronic materials. Capital and Malaysian government to the Board of U21Global on this The Memorandum of Understanding arm Malaysian Venture Capital transaction. November 19, 2007 is part of an ongoing program of Management. The acquisition is regional investment by Sigma- in line with GTL’s inorganic growth MediaTek, Taiwan’s leading fabless Aldrich, which announced in strategy and will enable it to tap into house, has acquired the cell phone September its intention to invest in the fast growing South-East Asian IC operations of Analog Devices, a facility at the Wuxi-New District markets. November 15, 2007 the US-based manufacturer of Park located northwest of Shanghai, high performance analog, mixed- China. November 5, 2007 signal, and digital signal processing Singapore integrated circuits, for a cash SK Telecom (“SKT”), Korea’s largest consideration of US$350m. The wireless carrier, has agreed to BT plc, the British telecom giant, has acquisition will beef up MediaTek’s acquire a 38.9% stake in Hanaro- acquired a 100% stake in Frontline strength in developing third- Telecom, Korea’s number two Technologies, the Singapore-based generation (3G) cellular chips broadband service provider, from IT services company with 3,900 consistent with mainland China’s TD- US-based PEGs AIG and Newbridge employees spread across Asia-Pacific SCDMA standard. Post transaction, Capital, for a cash consideration region, for US$140m. The acquisition MediaTek will replace Freescale as of US$1.2bn, thereby implying an is in line with BT’s strategy to bolster the world’s 2nd largest cellular chip EV of US$2.75bn. Post transaction, its fast growing international IT supplier by end of 2007. SKT’s holding in Hanaro will services business and attract a September 13, 2007 stand at 43.6%. The acquisition long list of blue-chip clientele and will significantly enhance SKT’s technology partners. December 5, 2007 Hong Kong- and Singapore-listed competitive edge in Korea’s mature computer monitors manufacturer, telecoms market and increase TPV Technology, has announced 7

ASIAN TECHNOLOGY NEWSLETTER DECEMBER 2007, ISSUE 53 plans to acquire assets related to TPV has agreed to sell a 7.12% stake the assembly of monitors of Taiwan- to Chi Mei for US$104m. The stake based Chi Mei Optoelectronics, the sale is part of a strategic alliance world’s 4th largest flat panel maker, formed between the two firms in for US$38.5m. The acquisition will September 2007. December 4, 2007 help reduce TPV’s LCD module- assembly and transportation costs, and boost its share of the television market. In a separate transaction, To submit stories to the Asian Technology Newsletter, please contact Diwakar Mitr in Mumbai at (91) 22-6651-7128 or email [email protected].

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