Balda AG / Disposal/Strategic Company Decision 30.09.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Balda sells 12 per cent of its TPK holding to a company of its partner Michael Chiang and generates liquidity. - In return, Balda acquires a 5 per cent stake in Balda Investment Singapore (BIS) from Michael Chiang and becomes sole shareholder in BIS again. - Banks supports new strategic alignment. Agreement on new financial structure lasting until end of 2009 expected in November. - Balda to focus on infocom core business. - Via a stake in TPK and a cooperation Balda still to participate in growing touch screen market. - Telephone conferences today (see below). Bad Oeynhausen, September 30, 2008 The Supervisory and Management Board of Balda AG, listed in the Prime Standard section of the German Stock Exchange, have decided to sell 12 per cent of its stake in the touch screen producing company TPK, Xiamen, China. Upon completion of the transaction, Balda still holds 38 per cent of TPK and thus a substantial stake. Balda will not participate in the upcoming TPK capital increase. This capital increase leads to a dilution of the Balda stake in TPK from 38.0 per cent to 33.5 per cent. Due to the inflow of funds from the sale Balda now is in no need of fresh money from the banks. The involved parties have agreed to observe confidentiality with respect to the purchase price. Besides the purchase price Balda will receive 5 per cent of Michael Chiangs stake in BIS. Balda thus again becomes sole shareholder in BIS. Balda will focus its activities on infocom plastic systems and components as well as electronic products. By holding a stake in TPK Balda will also in the future be able to participate in the dynamic growth of the touchscreen technology. The banks explicitly support the new strategic alignment of the group. Completion of a final agreement with the banks for a refinancing of the existing credit lines to last until year-end 2009 is expected in November. Cornerstones of an agreement regarding credit terms and collateral are currently being negotiated. Until completion the banks have extended the existing standstill agreement. TPK is a joint venture between Balda Asian subholding Balda Investment Singapore (BIS) and the Taiwanese family of Michael Chiang. BIS is the operating entity for the groups companies in Asia, including production facilities in China (Suzhou and Beijing) and Malaysia. To be able to profit from increasing demand for touchscreen products, TPK will have to invest further. Due to the currently strained financial situation, Balda will not be able to participate in capital measures needed for this purpose. By selling a stake of TPK to Michael Chiang the Balda holding falls from 50 per cent to 38 per cent. As a consequence, TPK will not be consolidated on a pro rata basis as of the fourth quarter 2008. With this deconsolidation only TPK earnings or losses will be represented in the Balda accounts in the future. The plastics business is developing above plan so far. This trend will probably weaken until year-end within the plan. Balda group is assuming a positive operating income for 2008. Against the background of a weaker TPK performance than expected in the second half-year and the influence of expected extraordinary effects a net loss for the full year cannot be ruled out. Please note: Today, Tuesday September 30, telephone conferences with CEO Joachim Gut and CFO Dr. Dirk Eichelberger will be held at 2.30 p.m. CET (in German) for the media and at 3.30 p.m. CET (in English) for analysts and investors. 2.30 p.m. CET: Participants from Germany please dial the toll free number 0800 90 70 136 to enter, no code necessary. From the UK please dial the toll free number 0800 27 94 054. Callers from other countries please use the chargeable number +49 (0) 211 73 75 00 56. 3.30 p.m. CET: Participants from Germany please dial the toll free number 0800 80 50 122, from the UK 0800 27 99 498, no codes necessary. Callers from other countries please the use chargeable number +49 (0) 711 96 59 96 11. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Company profile Balda AG The internationally operating Balda Group develops and produces highly integrated devices comprising plastic, metal and electronic components as well as touch sensors. Among the customers of the Prime Standard listed company are international brand-names from the mobile telephony industry, medical technology and various related markets. The integration of plastic and touch screen technologies creates completely new customer benefits. Only Balda currently offers both technologies from one source on a global scale. The group has a strong position in the important growth markets China and India and owns four production facilities in the region. Plants in Brazil and in Malaysia, as well as the facility in Germany for Balda Medical, underline the global competitiveness of the group of companies. This ad hoc announcement includes 'forward-looking statements' which are based on the current expectations of the management of Balda. They are subject to risks and uncertainty because they relate to events and depend on circumstances that will occur in the future, such as, for example, developments in the mobile communications industry, changes in technology and the ability to timely and successfully develop new products and various other factors. Balda does not undertake any obligation to update publicly or revise forward-looking statements except to the extent legally required. This ad hoc announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or elsewhere. The shares in Balda AG (the 'Shares') may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the 'Securities Act')) unless registered under the Securities Act or pursuant to an exemption from such registration. The Shares have not been and will not be registered under the Securities Act. If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49 5734 922 2728, Fax: +49 69 710456450. Email: croehl@balda.de, Internet: www.balda.de DGAP 30.09.2008 --------------------------------------------------------------------------- Language: English Issuer: Balda AG Bergkirchener Str. 228 32549 Bad Oeynhausen Deutschland Phone: +49-(0)5734-922-0 Fax: +49-(0)5734-922-2747 E-mail: info@balda.de Internet: www.balda.de ISIN: DE0005215107 WKN: 521510 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Balda AG reduces stake in touch screen producer TPK and secures short-term financing
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