SiS International Holdings Limited to Divest its IT Distribution Business to Jardine OneSolution for US$130 Million
2010/11/29 19:47
Creation of One of the Largest, Fastest Growing IT Products Distribution and Services Powerhouses in the Region
HONG KONG and SINGAPORE, Nov. 29, 2010 /PRNewswire-Asia/ -- SiS International Holdings Limited (SEHK: 00529), one of the largest distributors of IT products in Asia, announced today that it has reached an agreement to divest its IT distribution businesses in Hong Kong, Singapore and Malaysia to Jardine OneSolution (BVI) Limited (JOS), a member of the Jardine Matheson Group, in cash at a consideration of approximately US$130 million (subject to adjustment).
The transaction, expected to be completed in early 2011 following the fulfillment of certain conditions, will create one of the largest and fastest growing IT products distribution and services companies in the region.
"We believe this is an appropriate time to divest our investment in IT product distribution businesses as Hong Kong, Singapore and Malaysia are becoming mature markets for IT products. Now that we have achieved market leadership positions, the business requires a different structure, resources, and finance to take the company to the next stage of growth," said Kia Hong Lim, Chairman and Chief Executive Officer, SiS International Holdings Limited. "At this stage, the divestment brings the best return for our shareholders as we take a pivotal role in the industry in changing our business model from IT product distribution in a mature market to the provisioning of distribution management services."
"Moving forward, SiS will focus on expanding our distribution management services and expanding our mobile phone products and solutions distribution business," Lim continued. "Our investment arm will also continue to seek new investment opportunities which have strong synergies with the businesses and our partners in the SiS Group."
Commenting on the transaction, Lim said: "The new entity will benefit from SiS's vast experience in IT distribution management and the strength and resources of JOS as part of a regional conglomerate in the Jardine Matheson Group."
SiS is one of the largest distributors of computer systems, software, peripherals and networking products in Asia, operating through a strong network of resellers representing many of the world's most renowned manufacturers.
JOS is one of the region's leading IT products distribution and services companies best known for its extensive reseller network, representation of renowned IT brands, value-added distribution model, and customer portfolio spanning a wide spectrum of industry sectors including the governments of the region.
"By leveraging the IT distribution operations in these key countries, we believe that we will enhance our partnership with resellers and vendors," said Steve Lo, Chief Executive Officer of JOS. "They will benefit from working with an industry leader that possesses a deep pool of combined experience, expertise and resources, supported by a value-added distribution model."
"This is only the beginning of an investment strategy to create more opportunities for vendors and resellers in mature markets such as Hong Kong, Singapore and Malaysia," Lim added. "The transaction is designed to drive vigorous growth across both our businesses allowing the new entity to be an even stronger company. SiS will provide distribution management services to JOS and the new entity to assist them in expanding their market shares in the existing markets and to explore new opportunities in the rest of the region. SiS will spearhead many of the new developments both in terms of market and product portfolio expansion."
About SiS
Founded in 1983, SiS is one of the largest distributors of computer systems, software, peripherals and networking products in Asia. Headquartered in Hong Kong with regional offices( http://www.sis.com.hk/sis_regional.asp ) in Indonesia, Malaysia, Singapore and Thailand, SiS offers IT product manufacturers an immediate access into Asia with a well-established network consisting of more than 10,000 resellers, retailers, system integrators, software houses, value added resellers and OEMs strategically located throughout the region. SiS is a listed company on the Hong Kong Stock Exchange (SEHK: 00529). Find out more about SiS at www.sisinternational.com.hk.
About Jardine OneSolution (JOS)
With more than 50 years of solid experience, Jardine OneSolution (JOS) first engaged in distribution in the 1960s. Today, JOS is one of the region's leading IT products and distribution services companies best known for its extensive reseller network, representation of renowned IT brands, value-added distribution, unique hybrid distribution model, and customer portfolio spanning a wide spectrum of industry sectors. JOS differentiates itself with its value-added technical service and support provided to partners which is highly respected and sought-after in the industry. JOS is part of the regional conglomerate Jardine Matheson. Find out more about JOS at www.jos.com
SOURCE SiS International Holdings Limited