1.Date of occurrence of the event: 2006/06/04
2.Name of the company:High Tech Computer Corp.
3.Relationship to the company (listed company or affiliated company):Listed company.
4.The shareholding ratios of mutual holding:N/A Listed company.
5.Cause of occurrence:
Taoyuan, Taiwan, R.O.C. June 4, 2006 - High Tech Computer Corp. (HTC; TAIEX: 2498) today explained further about the planning acquisition of Dopod (Cayman) Holding Corporation ("Dopod").
HTC is planning to acquire entire Dopod at no more than US$ 150 million with 18.75 times PE ratio for 2005. The projected PE ratio for 2006 will be 7.5 times.
For the acquisition of Dopod, HTC makes further explanation as below:
(1)According to HTC's assessment to Dopod, the entire Dopod (100% of Dopod equity) to be valued at no more than US$150 million. For example, if HTC acquires Dopod 60% equity, the transaction value will be no more than US$90 million. The transaction price and the percentage of acquisition will be negotiated and subject to further due diligence.
(2)Dopod's net profit for 2005 was US$ 8 million. For Q1 2006, its net profit (self-assessed) grew rapidly with around US$ 5 million. Using the above assessed valuation of Dopod, PE ratio for 2005 is only 18.75 times, and it will be 7.5 times for 2006 PE ratio. The valuation is reasonable for a rapid growth company likes Dopod.
(3)If adopting stock exchange for the acquisition based on HTC's current trading price and the above assessed valuation of Dopod, HTC, for example, acquires 60% of Dopod equity, the dilution rate of HTC total outstanding shares will be 0.8%.
7.Any other matters that need to be specified:None