Flextronics to pay more than $1 billion in cash in Solectron merger

By Lisa Kerner

Charlotte, N.C., Oct. 3 - Flextronics International Ltd. will pay approximately $1.07 billion in cash and issue some 221.8 million Flextronics ordinary shares in its acquisition of Solectron Corp., which closed on Monday.

Computershare Shareholders Services, Inc., the exchange agent for the transaction, calculated that of the 918,438,865 shares of Solectron common stock outstanding:

• Holders of 725,108,506 shares, or 79.0%, elected to receive 0.345 of a Flextronics ordinary share per Solectron share;

• Holders of 81,440,695 shares, or 8.9%, elected to receive $3.89 cash per share; and

• Holders of 11,889,664 shares, or 12.2%, did not submit valid elections.

Flextronics also reported that Solectron stockholders who elected to receive stock consideration will receive Flextronics ordinary shares with respect to about 88.66% of their Solectron shares and cash with respect to approximately 11.34% of their Solectron shares.

In addition, instead of fractional Flextronics ordinary shares, Solectron stockholders will receive cash based on a price of $11.42 per Flextronics ordinary share, a company news release stated.

On June 4, Flextronics announced a definitive agreement to acquire Solectron for some $3.6 billion.

Flextronics is an electronics manufacturing services provider based in Singapore. Located in Milpitas, Calif., Solectron offers collaborative design and new product introduction, supply chain management, lean manufacturing and aftermarket services.

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