TTM signs letter of intent for SYE and DMC plants

USA: TTM Technologies Inc., a major printed circuit board (PCB) manufacturer, has signed a letter of intent with its minority partner, Shengyi Technology Co. Ltd. (Sytech) to dispose of TTM's 70.2 percent equity interest in the SYE plant and to acquire Sytech's 20 percent equity interest in the DMC plant.

The SYE and DMC plants manufacture conventional PCBs and are located in Dongguan, China. Subject to conclusion of a formal sale and purchase agreement between the parties, the transaction is expected to close by the end of the second quarter of 2013. A condition for closing is that the parties value all of SYE at 1 billion RMB (about $161 million) and all of DMC at 900 million RMB (about $145 million).

"In our Asia Pacific operating segment, we see the strongest growth prospects and customer demand for our advanced technology PCBs," said Kent Alder, CEO of TTM. "When completed, this transaction will reduce our footprint for conventional PCBs in Asia Pacific and should help improve our capacity utilization."