AEM's bid for CEI cements its M&A strategy to extend industry leadership

IN WHAT could end up being its largest acquisition to date, AEM Holdings' S$99.7 million buy-out bid for contract manufacturer CEI comes at an opportune time for the fast-growing company to extend its leadership in the industry.

Under the deal, AEM is offering S$1.15 for each share in CEI. While there is an option for an all-cash buyout, CEI shareholders can also choose a mix of 85 per cent cash and 15 per cent new AEM shares, or 70 per cent cash and 30 per cent new AEM shares, at an issue price of S$3.55 for each new share in AEM.

This would come up to either S$0.9775 in cash and 0.0486 of a new AEM share, or S$0.8050 in cash and 0.0972 of a new AEM share.