MANILA, PHILIPPINES – October 26, 2026 – Cirtek Holdings Philippines Corporation (“CHPC” or the “Company”; PSE: TECH), announced that its Board of Directors approved the sale of its entire ownership interest in Cirtek Electronics Corporation ("CEC") to Sancode Semi Private Limited ("Sancode"), an India-based private limited company, for a total purchase price of USD 20,200,000, subject to standard closing conditions.
Under the Share Purchase Agreement, the transaction involves the sale of 155,511,959 common shares representing 100% of the issued and outstanding capital stock of CEC. The purchase price consideration will be paid in cash by Sancode structured in two distinct tranches:
• First Tranche: USD 11,320,000.00, representing approximately 60% of CEC’s issued and outstanding shares, payable at Closing. • Second Tranche: USD 8,880,000.00, representing approximately 40% of CEC’s issued and outstanding shares, payable within one year from the Closing Date, which shares shall be held in escrow until full payment is completed.
The Company intends to strategically deploy the proceeds to optimize its balance sheet and fuel future growth. A portion of the funds will partially settle the Company's outstanding bank loans to reduce overall debt, while the remainder will support the working capital requirements of Cirtek Advanced Technologies and Solutions Inc. (“CATSI”), CHPC's core remaining operating subsidiary.
Demonstrating a strong commitment to local continuity, Sancode intends to allocate an additional USD 2,000,000.00 for capital expenditure (CAPEX) to upgrade CEC’s equipment and expand operational capacity. In addition, Sancode will earmark USD 2,800,000.00 for an employee benefit plan designed to ensure the full retention of CEC’s existing workforce.
"This transaction represents an important milestone in CHPC's continuing effort to unlock value from its investments while strengthening our financial position”, said Brian Gregory Liu, EVP & CFO of CHPC. “The sale allows us to reduce debt, enhance liquidity, and focus our resources on strategic opportunities that will drive long-term growth. We are encouraged that this will bring additional foreign investment into the Philippines and support the continued modernization and expansion of CEC's operations under Sancode's ownership. We believe this outcome creates value for our stakeholders while supporting the long-term sustainability and competitiveness of our business."
Mark Wong, President of CATSI, emphasized the operational advantages: "We are excited about the opportunities this transaction creates for CATSI. The expected infusion of working capital will strengthen our ability to support ongoing operations, pursue growth initiatives, and better serve our customers. With a stronger financial foundation, CATSI will be in a better position to improve operational efficiency and capitalize on emerging market opportunities. We look forward to leveraging these additional resources to support our next phase of growth.”
As CHPC embarks on this next chapter, the Company remains committed to creating long-term value for its shareholders, employees, customers, and business partners. The transaction reflects CHPC's strategic focus on financial stability, supporting the continued growth of CATSI, and fostering greater investment in the Philippine semiconductor and technology industries. |