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Synnex Technology International Corporation announces to launch a tender offer to acquire the total issued and outstanding common shares of Bestcom
synnex technology international corporation

Synnex Technology International Corporation (hereinafter “Synnex”, 2347.TW) announced on 1st March, 2016 that its Board of Directors approved to launch a cash tender offer to acquire total outstanding common shares of BestCom Infotech Corp. (hereinafter “Bestcom”, 3074.TW) at NTD 18 per share.

Synnex now owns 40.86% of Bestcom’s total outstanding shares, and plans to acquire at least 20,640,659 shares (accounting for 20% of the total issued and outstanding shares of Bestcom,「Minimum Acquired Amount」) and up to 61,036,519 shares (accounting for 59.14% of the total issued and outstanding shares of Bestcom, 「Proposed Amount」) The tender offer period starts from 2nd March, 2016 to 7th April, 2016, and this tender offer will be satisfied if final effective tendered shares reaching the 20,640,659 shares (Minimum Acquired Amount) and receive the approval from FAIR TRADE COMMISSION. After completion all the qualifications of the tender offer, Bestcom will be terminated from the TPE trading of Emerging Stocks.

Bestcom has ample experiences and strong management team in technology products and performs a good result and reputation, especially in the IT related commercial field. Owing to industry depression and decreasing product price, the overall performance of Bestcome faced the difficulty which resulted in the revenue in recent years kept as NT$11bn. Through this tender offer, Bestcom will become the 100% owned subsidiary of Synnex, and be terminated from the TPE trading of Emerging Stocks. In order to make a breakthrough, Synnex plans to offer a long-term strategic investment with Bestcom to avoid the short-term performance pressure, and increase the revenue, technical service, and commercial channel distribution opportunity in the future.

The main business of Synnex are IC components, IT related, telecom products distribution. Considering Bestcom as well focus on the IT system channel, with this integration, we expect that Synnex will decrease overlapping investments cost to create bigger performance synergies, and not only enhance the enterprise value, but also break through the growth bottleneck to reach higher revenue growth target.

When this tender offer completes, total consideration amount will be up to NTD 1.1billion, and Bestcom will become 100% owned subsidiary of Synnex according to the acquisition price and the proposed acquisition shares, furthermore, will be terminated from the TPE trading of Emerging Stocks.

Synnex engages KGI as financial adviser for the tender offering.