Industries International Inc. (IDUL), Shenzhen, China, has signed a memorandum of understanding to acquire all outstanding shares of Top Goal Technology Ltd., a British Virgin Islands corporation, along with the company's 70% equity stake in Sinotech Electronics Ltd. and Fine Capital International Ltd., two Hong Kong-based semiconductor distributors.
The closing price will be based on Top Goal's asset value and financial status.
Sinotech and Fine Capital were incorporated in Hong Kong in 1995 and 1996, respectively. The two companies are authorized distributors of semiconductors, microchips and MCUs for Toshiba, Hynix, and Samsung in Hong Kong and China.
"The electronic products industry is gigantic in China, which according to the China Electronic Home Appliances Association, accounts for one-fifth of the world's total production," said Weijiang Yu, president of IDUL, in a statement. "Sinotech and Fine Capital have successfully made full use of the opportunities and developed into the largest MCU suppliers for cordless telephones in China."
IDUL, through its wholly owned subsidiary, Broad Faith Ltd., develops and distributes throughout China communications terminal products, mainly corded and cordless telephones that are sold under the Wondial trademark. Through a second wholly owned subsidiary, Li Sun Power International Ltd., IDUL also manufactures lithium and lithium-ion batteries and test equipment for chemical composition and batteries.