UNIVERSAL ELECTRONICS INC. (NASDAQ:UEIC) Files An 8-K Entry into a Material Definitive AgreementItem 1.02 Entry into a Material Definitive Agreement
On April 23, 2018, a wholly-owned subsidiary of Universal Electronics Inc. (“UEI”), C.G. Development Limited (“C.G. Development”), entered into an agreement to sell its entire ownership interest in Gemstar Technology (China) Co. Ltd. which owns and previously operated one of our China manufacturing facilities (“Gemstar China”) to Guangzhou MuXia Hotel Management Co., Ltd. (“GMHM”).
In exchange for the sale of 50% of the capital of stock of Gemstar China, GMHM will pay C.G. Development RMB$338,888,000 (approximately USD$54 million based on current exchange rates) in cash. The purchase price will be paid as specified in the agreement and the closing of the sale will be subject to customary regulatory approval by the local commerce authority. The sale is expected to be completed no later than June 30, 2018.
Item 1.02Termination of a Material Definitive Agreement.
On September 30, 2016, UEI announced that its wholly-owned subsidiary, C.G. Development, entered into an Equity Transfer Agreement (the “Transfer Agreement”) to sell its entire ownership interest in Gemstar China to Guangzhou Junhao Investment Co., Ltd. (“GJI”) for RMB320 million (approximately US$51 million based on current exchange rates) in cash at closing. The closing of the sale was subject to completion of due diligence to the parties' satisfaction.
On April 17, 2018, C.G. Development and GJI mutually agreed to terminate the Transfer Agreement as the parties have been unable to agree that the due diligence has been completed. The mutually agreed termination takes effect immediately with no penalty or costs to either party.
About UNIVERSAL ELECTRONICS INC. (NASDAQ:UEIC)
Universal Electronics Inc. (UEI) develops control and sensor technology solutions and manufactures a line of pre-programmed and universal remote control products, audio-video (AV) accessories, and intelligent wireless security and automation components. The Company’s offerings include pre-programmed universal infrared (IR) and radio frequency (RF) remote controls that are sold primarily to subscription broadcasting providers, original equipment manufacturers (OEMs), retailers, and private label customers, and integrated circuits, on which its software and universal device control database is embedded, sold primarily to OEMs, subscription broadcasting providers, and private label customers. Its offerings also include software, firmware and technology solutions that enable devices, such as televisions, set-top boxes, stereos, smart phones tablets, gaming controllers and other consumer electronic devices to wirelessly connect and interact with home networks and interactive services.
