The Ayala Group’s electronics manufacturing arm, Integrated Micro-Electronics Inc. (IMI), is selling its facilities in the Czech Republic to a China-based firm for about ₱636 million as it continues to rationalize its global operations to return to profitability.

In a disclosure to the Philippine Stock Exchange, IMI stated that its wholly-owned subsidiary, Coöperatief IMI Europe U.A., has signed a share purchase agreement to sell 100 percent of the shares in IMI Czech Republic (IMI CZ) to KEBODA Deutschland GmbH & Co. KG.

The buyer is a subsidiary of Keboda Technology Co., Ltd. (Keboda), a publicly listed company in China. Keboda was founded in 2003 and is headquartered in Shanghai. It is a leading system solution provider for intelligent and energy-efficient electronic components in the automotive industry.

The total consideration is €10.03 million, subject to post-closing adjustments, to be paid in three tranches. €1 million upon signing of the share purchase agreement, €8.53 million upon closing of the deal, and €500,000 10 business days after closing, accounts become final.

“This sale was executed as part of IMI’s restructuring and footprint rationalization program which was initiated in the second half of 2024.

“The move will further reduce overhead and administrative expenses as the company consolidates its operations in Europe into its Bulgaria and Serbia facilities,” IMI said.

IMI added that it remains fully committed to its customers in the Czech Republic. A majority of the customers previously served by IMI Czech Republic have already been smoothly transitioned to IMI’s facilities in Serbia and Bulgaria.

For the remaining customers, IMI will ensure uninterrupted service until they are relocated to alternative IMI locations or their products reach end-of-life.

This ongoing support will be provided under a manufacturing services agreement with Keboda, established as part of the share purchase agreement.

Closing of the deal will happen as the parties fulfill the conditions precedent of the deal. These include governmental approvals, settlement of financing agreements, completion of business carveouts to other IMI European sites, and the execution of the manufacturing services agreement between IMI and Keboda.

Last January, IMI announced the strategic closure of its facility in Chengdu, China as part of ongoing efforts to streamline operations and reduce costs, aligning with the company’s strategy to consolidate its footprint into strategically located facilities.

Production at IMI Chengdu concluded in December 2024 after all customer commitments have been successfully met although some remaining customer projects have been seamlessly transferred to other IMI sites.