S&T AG in advanced negotiations with Ennoconn about investment in S&T AG

12.10.2016 | Austria

S&T AG plans to take a stake in Kontron

The Management Board of S&T AG hereby announces about advanced negotiations with Ennoconn Corporation regarding an investment of Ennoconn Corporation in S&T AG in the course of a 10% cash capital increase. This would ensue from authorized capital, and would increase the share capital of S&T AG by EUR 4,383,620 on a cash paid basis. The capital would thus rise from EUR 43,916,204 to EUR 48,299,824. The issue price of the new shares will be based on the XETRA market price of the last 10 trading days. The subscription rights of the shareholders are to be excluded and the new shares are to be subscribed by companies of the Taiwanese Ennoconn Corporation Group. The execution of the capital increase will be subject to the suspensive condition of approval by the Austrian Takeover Commission.

S&T AG intends to use the cash inflow from the cash capital increase to acquire a stake of up to 29.9% in Kontron AG, Augsburg. The Management Board of S&T AG announced that it is in advanced negotiations with Kontron AG shareholders to acquire a total of up to 29.9% of Kontron AG shares.

In addition to the investment in course of the 10% cash capital increase Ennoconn Corporation is, according to information received by S&T AG, also planning to increase its stake in S&T AG to 29.4% by purchasing shares from major shareholders, subject to the approval of the respective anti trust authorities.

Ennoconn Corporation is a producer of embedded industrial computer systems, and is a subsidiary of Hon Hai Precision Industry Co., Ltd., which is the world's largest producer of electronics. Its brand of Foxconn's high degree of recognition stems from its manufacturing of Apple iPhones. The investment of the Foxconn Group in S&T and the investment of S&T in Kontron would yield important synergies to S&T AG within a strategic working relationship. Foxconn is one of the leading manufacturers in the areas of embedded computer systems and wireless data transmission. As such, Foxconn possesses large and highly-efficient production facilities. Kontron's position of having been the leader on the market for embedded computer systems has bequeathed it a broad range of customers. S&T has strong software engineering resources. The partners want to meld and deploy these assets to be a world leader in the fields of Internet of Things and Industry 4.0.

S&T AG (www.snt.at, ISIN AT0000A0E9W5, WKN A0X9EJ, SANT) is the lead company of an international technology group that employs some 2,400 people and maintains operations in 20 countries. S&T is listed on the Prime Standard segment of the Frankfurt Stock Exchange. S&T is a major supplier of IT systems. Its extensive portfolio of IT services and solutions makes S&T one of the leading suppliers in this field in Central and Eastern Europe. S&T's portfolio includes a large number of proprietary developments. These for the Appliances, Cloud Security and Smart Energy sectors.

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