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Thursday, March 28, 2024

Cirtex eyes two foreign acquisitions in 8 months

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Cirtek Holdings Philippines Corp. plans two more acquisitions overseas over the next six to eight months to boost operations.

Cirtek vice chairman and group president Roberto Juanchito Dispo said in an interview at the sidelines of an investors briefing, said the company was targeting a company from the United Kingdom and China for the planned acquisitions.

“We will do two more acquisitions over the next six to eight months,” Dispo said.

Cirtek chief finance officer Anthony Buyawe said in the same interview the prospective acquisitions would complement the company’s business operations and expand the market in Asia.

Buyawe said the company planned to conduct a follow-on offering to finance the  acquisitions.

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He said Cirtek was considering to buy 100 percent of the UK-based company with a market capitalization of £50 million.

“We are already collaborating with the UK company for five to six products. But they have indicated that they are willing to be bought,” Buyawe said.

The China-based company, meanwhile, haz same market capitalization as Cirtek’s but its market is bigger compared with Cirtek.

Cirtek in 2017 acquired US-based Quintel for $77 million. Quintel is a leading innovator of spectrum and space-efficient base station antennas for wireless networks.

Cirtek reported a net income income of $7.5 million in the first half of the year, up 60 percent year-on-year, on strong revenues from the recently acquired US-based company Quintel.

First-half revenues surged 30 percent to $54.8 million from $42.2 million in the same period a year ago.

Revenue contribution from Quintel amounted to $30.7 million.

First-half revenues from the semiconductor business, meanwhile, amounted to $20.5 million, down five percent from $21.5 million a year ago.

Operating expenses soared 373 percent to $10.2 million due to the consolidation of Quintel.

Share price of Cirtek on Friday dropped 4.6 percent to P40.

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