Restructuring Plan Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 28, 2001--Asia Pacific Wire & Cable Corporation Limited (NYSE:AWC) today announced its strategic expansion and restructuring plan, and in an acceleration of the previous internally-planned timetable, the Company announced that the plan is to be implemented as soon as possible. The plan contains two key elements, including the acquisition of Crown Century Holdings Limited ("CCH") and its wholly owned subsidiary, Pacific Electric Wire & Cable (Shenzhen) Co. Ltd. ("PEWS"), followed by the merger of the Thai operations of the Company. Tom Tung, Chairman, stated, "The acquisitions of CCH and PEWS for new common shares of the Company will add solid and profitable companies to our operating group. In the year 2000, CCH and PEWS reported combined revenue of $42,000,000 and a profit of $1,300,000, and the consolidated net worth of those companies is estimated to be $10,000,000." Mr. Tung continued, "The Company has accelerated its strategic expansion plan in order to enhance shareholder value as quickly as possible. The transaction has already been approved by the Board of Directors of each of the Company and Pacific Electric Wire & Cable ("PEWC"), the Company's majority shareholder and the seller of the shares of CCH and PEWS. The valuation for the CCH and PEWS acquisition will be based upon unaudited third quarter financial statements of the Company, with a post closing adjustment, if necessary, following completion of the Company's year-end audit. Our majority shareholder, PEWC, has demonstrated in the past its commitment to support the business and operations of the Company, and we view this attractive acquisition opportunity as a further demonstration of that support. We anticipate that the transaction will close in January, 2002." The second key element of the Company's strategic expansion and restructuring plan is the merger of its Thai operations, which the Company believes will generate cost savings of approximately $1,000,000 per year, while improving overall efficiency. Mr. Tung commented, "We believe the synergistic effect of merging these operations will produce significantly reduced overhead and will centralize decision making and resource allocation for our Thai operations." The Thai merger is subject to further Board approval at the subsidiary level and local regulatory approval in Thailand. The Company anticipates completing the merger during the first quarter of 2002. Mr. Tung further stated, "The Company is committed to enhancing shareholder value and to addressing questions regarding its public trading price. This acceleration of the implementation of our strategic expansion and restructuring plan is a demonstration of that commitment." Asia Pacific Wire & Cable Corporation is a leading manufacturer of wire and cable products for the telecommunications and power industries in selected markets in the Asia Pacific Region. Except for statements of historical fact, this news release contains certain forward-looking statements about the Company. Such statements are subject to significant risks and uncertainties including changes in economic and market conditions, successful implementation of growth plans, and other risks noted in the Company's SEC filings which may cause actual results to differ materially.
Asia Pacific Wire & Cable Announces a Strategic Expansion and