MI sells Czech Republic plant for €10.03 million

MANILA, Philippines — Ayala-led Integrated Micro-Electronics Inc. (IMI) is disposing its manufacturing facility in Czech Republic as part of the company’s footprint rationalization initiative.

IMI said its subsidiary, Coöperatief IMI Europe U.A., inked a share purchase agreement to sell 100 percent in IMI Czech Republic to KEBODA Deutschland GmbH & Co. KG for 10.03 million euros.

KEBODA Deutschland is a subsidiary of Keboda Technology Co. Ltd., a publicly listed company in China.

Headquartered in Shanghai, Keboda is a system solution provider for automotive intelligent and energy-sufficient electronic components.

IMI said  the total consideration of 10.03 million euros would be paid in three tranches, wherein one million euros will be paid upon signing of the share purchase agreement, 8.53 million upon closing of the deal and 500,000 euros 10 business days after closing accounts become final.

Closing will happen as the parties fulfill the conditions precedent of the deal, which include governmental approvals, settlement of financing agreements, completion of business carveouts to other IMI European sites and the execution of the manufacturing services agreement between IMI and Keboda.

The sale is expected to reduce IMI’s overall overhead and administrative expenses.

“As part of IMI’s footprint rationalization initiative, the company will further consolidate its footprint in Europe to its Bulgarian and Serbian facilities,” it said.

IMI, however, said that it remains fully committed to its customers in Czech Republic.

The company said that majority of the customers previously served by IMI Czech Republic have already been smoothly transitioned to its facilities in Serbia and Bulgaria.

“For the remaining customers, IMI will ensure uninterrupted service until they are relocated to alternative IMI locations or their products reach end-of-life. This ongoing support will be provided under a manufacturing services agreement with Keboda, established as part of the share purchase agreement,” it said.

IMI has been working on strengthening its balance sheet by reducing external loans and maintaining adequate liquidity through effective cash flow management, optimizing working capital and establishing credit lines.

In 2024, the company embarked on a transformative journey under a new leadership team aimed at improving efficiency, fostering growth and adapting to changing market dynamics.

IMI has streamlined its management structure by flattening the organizational hierarchy and enhancing accountability at all levels.

The company also optimized its global footprint by closing and rationalizing facilities in California, Malaysia, Singapore, Japan and Chengdu.

Recently, IMI announced plans to expand its services to warehousing and logistics support services, which was made possible through the amendment to the second article of the company’s articles of incorporation.

IMI is a global electronics manufacturing solutions expert specializing in highly reliable and quality electronics for long product life cycle segments in the automotive, industrial, power electronics, communications and medical industries.