IMI sells German stake to drive shift

Integrated Micro-Electronics, Inc. (IMI) is selling its majority stake in Germany-based display solutions firm VIA Optronics Holding AG to shift focus on higher-growth automotive and industrial markets.

In a stock exchange report on Friday, the Ayala-backed company confirmed that its wholly-owned unit, Coöperatief IMI Europe U.A., is selling its 50.32 percent stake in VIA Optronics to Kronen 3140 GmbH — soon to be renamed V-PTR Beteiligungs GmbH — a firm owned by select members of VIA’s management and advisory team.

IMI said the parties have agreed to a consideration structure with “both fixed and post-closing variable earn-out components.”

IMI’s broader portfolio realignment strategy

The company said the move is consistent with IMI’s broader portfolio realignment strategy, which aims to optimize its global “footprint to concentrate capital and management allocation into high-growth, high-profitability markets.”

By divesting VIA, IMI positions itself to refocus resources while allowing the German display solutions provider to recalibrate its own direction.

Headquartered in Nuremberg, VIA is expected to gain greater speed and independence under its management-led ownership. IMI said the company will benefit from “increased focus” and “greater flexibility to seek strategic partners that better align with the company’s long-term growth and profitability goals.”

Streamlined operations

Aside from this most recent sale, IMI has streamlined operations, including the sale of IMI Czech Republic and the planned consolidation of two Shenzhen sites, steps aimed at lowering overhead costs and improving efficiency while maintaining operational scale.

In the first nine months of the year, IMI turned around its performance after it posted a $16.4-million core net profit, reversing last year’s $1.1- million loss. Total revenues reached $749 million, with $679 million from core operations. Core EBITDA held strong at $49.8 million, representing a 7.3 percent margin.

IMI also boosted its balance sheet, generating $82.6 million in operating cash flow and cutting net debt to $124 million by September from $199 million at the start of the year. The company repaid $26.2 million in the third quarter on top of $34.5 million earlier in the year.