Brightpoint (CELL) Subsidiary Enters Malaysian JV w/ STC Partners; to Invest $22.3M in STC
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Brightpoint, Inc. (Nasdaq: CELL), reports its subsidiary, Brightpoint International (Malaysia) Sdn. Bhd., has entered into an agreement with STC Partners Sdn. Bhd. ("STC") to create a joint venture in Malaysia and purchase certain assets of STC. The joint venture, which will be operated through Brightpoint Malaysia, will provide wireless device distribution and logistic services to leading manufacturers, operators and retailers in the Malaysian market. Brightpoint will own 60 percent of the joint venture and STC will own 40 percent.
Brightpoint Malaysia will, in exchange for the assets that comprise the ongoing Malaysian wireless business of STC, pay RM18.9 million (approximately US$6.1 million) to STC and transfer 40 percent ownership of Brightpoint Malaysia to STC. In addition, Brightpoint Malaysia will purchase the fixed assets and inventory held by STC. Brightpoint Malaysia has agreed to pay to STC contingent cash earn-out payments, subject to the achievement of certain operating performance measures, which may be payable after the anniversary of closing through each of the first five operational years. The aggregate earn-out payments shall in no event exceed RM35.1 million (approximately US$11.3 million) and the amount paid for STC's fixed assets and inventory is currently not anticipated to exceed RM15 million (approximately US$4.9 million).
The proposed transactions are expected to close in January, 2012, pending the fulfillment of certain closing conditions. For additional details in connection with these transactions, please refer to the Current Report on Form 8-K, which Brightpoint, Inc. will file with the Securities and Exchange Commission today.
Brightpoint Malaysia will, in exchange for the assets that comprise the ongoing Malaysian wireless business of STC, pay RM18.9 million (approximately US$6.1 million) to STC and transfer 40 percent ownership of Brightpoint Malaysia to STC. In addition, Brightpoint Malaysia will purchase the fixed assets and inventory held by STC. Brightpoint Malaysia has agreed to pay to STC contingent cash earn-out payments, subject to the achievement of certain operating performance measures, which may be payable after the anniversary of closing through each of the first five operational years. The aggregate earn-out payments shall in no event exceed RM35.1 million (approximately US$11.3 million) and the amount paid for STC's fixed assets and inventory is currently not anticipated to exceed RM15 million (approximately US$4.9 million).
The proposed transactions are expected to close in January, 2012, pending the fulfillment of certain closing conditions. For additional details in connection with these transactions, please refer to the Current Report on Form 8-K, which Brightpoint, Inc. will file with the Securities and Exchange Commission today.
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