Flex (FLEX) To Divest Interests In Multek Operation To MFLEX
Zacks Investment Research | Mar 26, 2018 10:41PM ET
Flex Ltd. (NASDAQ:FLEX) recently signed a definite agreement to divest its US-based Multek operation to Multi-Fineline Electronix Inc. ("MFLEX"), a wholly-owned subsidiary of Suzhou Dongshan Precision Manufacturing Co. ("DSBJ").
Per the deal, Flex will sell all of the equity interests of its China-based business subsidiary, Multek to MFLEX in an all-cash deal. Upon completion, Multek will continue to operate with its current name and location in Zhuhai, China.
The divestment deal will result in a payment of $273 million to Flex. The transaction is subject to regulatory clearance and is expected to close in the third quarter of calendar year 2018. The sales proceeds will be used toward developing core assets and also strengthen balance sheet. Such asset dropdowns and reduction of debts surely bodes well for the company’s growth.
Per president of Multek "Multek has built a strong reputation for its industry-leading capabilities that range from simple Low Layer Count rigid PCBs, to complex 46-Layer PCBs, High Density Interconnect (HDI) Flexible Printed Circuits, and Rigid-Flex PCBs.”
It is important to note that this strategic acquisition is expected to enhance DSBJ product offerings to customers and solidify its position as a global technology company.
Price Movement
Shares of Flex have gained 1.49% in the past six months as compared with 5.27% loss of the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.