SEMI-TECH BACKS AKAI SALE
By Adnews Staff
Semi-Tech Corp. of Markham, Ont. is putting up $320 million for its subsidiary Akai Electric Co. of Japan to buy Kong Wah Holdings, one of China's largest television manufacturers. Semi-Tech bought 55% of Akai earlier this year. The Canadian firm's aim is to boost Akai's television business and bring the high end electronics maker out of a money-losing slump. Kong Wah has been supplying television sets to Akai for five years, which the latter has been selling under its own label. Also, the two companies have been developing a television with a built-in videocassette recorder to be launched in the fall. With the takeover of Hong Kong-based Kong Wah, which has yet to be approved by shareholders, Akai would be able to sell a lot more television sets. In addition, the move gives Akai a stronger presence in China's growing consumer market. Akai will shift its production of video and audio systems from expensive factories in Japan to low-cost facilities in China. Semi-Tech controls a group of companies which includes Singer Co. NV of the Netherlands and Sansui Electic Co. of Japan. Semi-Tech chairman James Ting says he will use sewing machine maker Singer's worldwide distribution network to sell goods from Akai and Sansui.