Infineon Wants to Take Over Norwegian SensoNor - Acquisition Will Strengthen Automotive Sensor Business
Joint news release of Infineon and SensoNor
Munich/Germany and Horten/Norway - May 20, 2003 - Infineon Technologies AG (FSE/NYSE: IFX), a world leading semiconductor manufacturer, announced that it plans to acquire SensoNor ASA, headquartered in Horten, Norway, with the aim of significantly strengthening its position in semiconductor sensors for the automotive business. Stockholders are due to receive a takeover bid after todays extraordinary general meeting of shareholders of SensoNor, a leading provider of tire pressure and acceleration sensors. A capital increase for cash is being made at the same time. Infineon expects that it will pay around Euro 48 million to complete the acquisition.
As part of the terms of the offer, Infineon wants to purchase 138.5 million shares from institutional and private investors at a price of NOK 2 per share. This corresponds to an investment of around Euro 35 million. SensoNor will also issue 100 million new shares to Infineon for a cash contribution of NOK 1 per share, making an equivalent total of around Euro 13 million.
The planned friendly takeover of SensoNor would make Infineon the market leader of the tire pressure sensor segment. The advantage of this transaction lies in combining the two companies existing development and production expertise. SensoNors tire pressure sensors have already been fully qualified by leading car manufacturers with whom long-term supply agreements have been concluded.
This planned takeover means were consequently pursuing our strategy of further strengthening our already leading position in the automotive sector, and were aiming to double our market share in automotive semiconductor sensors to 15 percent, said Dr. Reinhard Ploss, head of Infineons Automotive & Industrial Electronics Group. Were Europes biggest manufacturer of semiconductor solutions for automotive electronics and the worlds second biggest. Acquisition will allow us to significantly boost our existing pressure sensor business; well also be able to ideally enlarge our product portfolio for semiconductor sensors to include acceleration sensors.
The market for semiconductor sensors in automotive applications will increase by up to 20 percent per year. Sensors that check tire pressure are the biggest growth driver for pressure sensors. Regulations in this area mean car manufacturers will be fitting around 10 percent of new vehicles registered in the USA with tire pressure monitoring systems by the end of 2003; in 2004 this level will increase to about 35 percent, and in 2005 to 65 percent.
Infineons Automotive & Industrial group, headquartered in Villach, Austria, reached in the second quarter revenues of another all-time high of Euro 354 million. The companys performance efficiency in automotive electronics is based on the innovative strength of the more than 500 engineers working in key technologies such as sensor technology, safety systems, engine management, and telemetry. Infineon has more than 25 years experience in automotive electronics. An Infineon chip is used for engine management in one in three cars worldwide and in every second car in Europe. Infineon chips control the power supply systems for everything from light bulbs to the speedometer, ignition system, and adverse weather lamps in one in two cars.
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com.
SensoNor was founded in 1985 in Horten, Norway, and is now a globally leading developer and volume producer of sensors and products based on micro-electromechanical systems. The company is quoted on the Oslo Stock Exchange ( www.oslobors.no under ticker symbol SEN) and employs 170 people.