Vsource (NASDAQ:VSCE)
Historical Stock Chart
From Jun 2019 to Jun 2024
Vsource(R) Announces Sale of Up to 39.3% Stake in Operating Subsidiaries to
Symphony House Berhad of Malaysia
LA JOLLA, Calif., Dec. 11 /PRNewswire-FirstCall/ -- Vsource, Inc. (BULLETIN
BOARD: VSCE) , an innovative leader in providing customized global business
process outsourcing (BPO) services to clients worldwide, today announced the
signing of a sale and purchase agreement with Symphony House Berhad, an IT and
corporate services company based in Malaysia, and other Malaysian investors, for
the sale of up to 39.3% of Vsource (Malaysia) Sdn. Bhd., Vsource's wholly-owned
operating company based in Kuala Lumpur, Malaysia.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030910/VSCELOGO )
Under the terms of the sale and purchase agreement dated December 11, 2003,
Symphony and the other investors will acquire up to 39.3% of the issued and
outstanding share capital of Vsource Malaysia from Vsource by way of a private
placement for a consideration of Malaysian Ringgit 36.1 million (approximately
US$9.5 million). As a result, following the completion of the transaction,
Vsource will hold 60.7% of Vsource Malaysia, and Symphony and the other
investors will hold 30.3% and 9.0%, respectively. Completion of the placement
is expected to take place on in the first quarter of 2004.
Symphony House, which is the parent company of the Symphony Group of companies,
is currently the largest company on Malaysia's Mesdaq market, based on market
capitalization. Headed by Azman Yahya, the Symphony Group offers a wide range
of IT services, solutions and corporate services to over 2,500 Malaysian and
other companies in the Southeast Asian region.
A signing ceremony between Vsource and Symphony was held in Cyberjaya, Malaysia
today in conjunction with the opening of Vsource's new facility in the Malaysian
Super Corridor. The event was officiated and witnessed by Tan Sri Nor Mohamed
Yakcop, Special Economic Adviser to the Prime Minister. Each company's senior
management and distinguished guests were also on hand to witness the ceremony.
The agreement was signed by Azman Yahya, Group Chief Executive of Symphony House
Berhad and Phillip E. Kelly, Chairman and Chief Executive Officer of Vsource,
Inc.
Completion is subject to standard terms applicable to a transaction of this
nature, including satisfaction of the following key conditions:
* The transfer by Vsource to Vsource Malaysia of 100% of the issued and
outstanding shares of Vsource's wholly owned subsidiaries Vsource
(Japan) Limited and Vsource Taiwan Limited Company;
* Shareholder approvals, if applicable;
* Regulatory approvals; and
* Satisfactory completion of due diligence by Symphony.
Following a completion of the transaction, the board of directors of Vsource
Malaysia will be comprised of three directors, two of whom will be appointed by
Vsource and one of whom will be appointed by Symphony. The Chief Executive
Officer of Vsource Malaysia will be John G. (Jack) Cantillon, currently the
Chief Operating Officer of both Vsource Malaysia and Vsource.
Subject to market conditions, the parties currently intend to list Vsource
Malaysia on Malaysia's MESDAQ Market in 2004.
"Our vision for the future is to continue building a fully integrated network of
Centers of Excellence (COEs) to support the BPO requirements of Fortune 500
companies globally and small and medium sized companies in the U.S. for a wide
range of services," said Phil Kelly, Chairman and Chief Executive Officer of
Vsource. "Since our BPO beginnings only four years ago, we have grown to be one
of the top BPO companies in Asia and the largest independent BPO company with
the ability to support the entire Asia-Pacific footprint. Our COE operating
headquarters in Malaysia supports and drives our COEs located in Kuala Lumpur,
Malaysia, Osaka, Japan, and our 3rd and 4th COE in Taipei, Taiwan, and
CyberJaya, Malaysia, respectively, both of which just opened this week. In the
future, we believe that it will be important to grow our COEs to locations such
as India, China and the Philippines, which will be driven from a consistently
growing presence from our COE operating headquarters in Malaysia."
Mr. Kelly continued, "We are delighted that we are able to announce this very
important event for our company today -- a new relationship with Symphony House
Berhad. We see Symphony as a company that represents the future of Malaysia,
and a company that can help us realize our strategy for our COEs. We are excited
and honored that Symphony will become a major partner with Vsource through its
investment in Vsource Malaysia. We see tremendous synergies, both in terms of
business but also in terms of drive, talent and vision, and expect our
relationship to be one that is truly a "win-win" for each of us, and one which
will have a significant positive impact on shareholder value for Vsource, Inc.
as well as the shareholders of Symphony. We welcome them as partners to the
Vsource family."
Dato' Mohamed Azman bin Yahya, Group Chief Executive of Symphony, commented,
"The acquisition of a stake in Vsource Malaysia will significantly enhance
Symphony's capability in delivering world-class BPO services to Malaysian
businesses. We are excited about the joining of forces between Symphony and
Vsource, an acknowledged market leader in the Asian BPO space. The success of
Vsource Malaysia and the COEs in Japan and Taiwan in delivering innovative and
cutting-edge solutions to their clients is a testament to the vision and
execution of the Vsource management team, and we look forward to augmenting this
talent with our knowledge and expertise in consulting and transforming Malaysian
businesses. Vsource Malaysia is truly a success story of the Multimedia Super
Corridor, and we are proud to be part of that success. We are confident that the
collaboration of our two organizations, both sharing similar visions of the
future, will result in an enhancement in shareholder value for all parties."
About Vsource
Vsource, Inc., headquartered in La Jolla, Calif., provides global business
process outsourcing (BPO) services to clients worldwide. Under Vsource Client
Outsourcing Solutions (COS), Vsource delivers superior BPO solutions to Fortune
and Global 500 organizations. Vsource COS offerings include: Human Resource
Solutions, Warranty Solutions, Sales Solutions, and Vsource Foundation
Solutions(TM), which include Financial Services, Customer Relationship
Management (CRM), Travel and Expense Claims, and Supply Chain Management (SCM).
Under Vsource Human Capital Management (HCM) Solutions, Vsource delivers Fortune
500 reliability to small and medium-sized businesses in the U.S. Vsource HCM
Solutions include: HR Management, Health and Welfare, Administrative Services,
and Risk Management.
For more information, visit the Vsource Web site: http://www.vsource.com/ .
About Symphony
The Symphony Group of companies offers a wide range of IT services, solutions
and managed corporate services to over 2,500 Malaysian and companies in the
South East Asian region.
The Symphony Group currently comprise of:
* Symphony House Berhad as its parent company, is listed on the MESDAQ
Market in Malaysia;
IT Division:
* Symphony Global Technologies Sdn Bhd, Symphony Xen Solutions Sdn Bhd,
Symphony Xen Solutions (S'pore) Pte. Ltd. and Symphony Vox Sdn Bhd
which provide complete systems integration, business processing
outsourcing services and business software solutions;
Corporate Services Division:
* Symphony Capital Sdn Bhd, Signet & Co. Sdn Bhd, Signet Share
Registration Services Sdn Bhd, Signet Nominee Services Sdn Bhd,
Malaysian Issuing House Sdn Bhd and OSK-Signet Trustees Berhad provides
a wide spectrum of managed corporate services including corporate
advisory, company secretarial, accounting and financial management,
human resource management, share registration, share issuance services,
nominee and trustee services.
Symphony is in the midst of completing the acquisition of Global IMP-ACT Sdn
Bhd, a systems integrator and exclusive distributor of Silverlake Integrated
Banking System, and Malaysian Share Registration Services Sdn Bhd, a share
registrar.
For more information, visit the Symphony House site:
http://www.symphony.com.my/
Forward Looking Statements: Some of the statements in this release and other
oral and written statements made by us from time to time to the public
constitute forward-looking statements. These forward-looking statements are
based on management's current expectations or beliefs and are subject to a
number of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. These
forward-looking statements include, without limitation, statements with respect
to anticipated future operating and financial performance, introduction of
services and growth opportunities expected or anticipated to be realized by
management. Vsource disclaims any obligation to update or revise any
forward-looking statements based on the occurrence of future events, the receipt
of new information, or otherwise. Factors that could cause or contribute to such
differences include, but are not limited to, reliance on one client and the
expectation that revenues from this client will decline significantly, a
potential requirement to redeem our Series 4-A convertible preferred stock if we
fail to meet certain conditions by March 31, 2006, our limited experience in the
business process outsourcing business, the new and unproven market for business
process outsourcing services in the Asia-Pacific region, long cycles for sales
of our solutions, complexities involved in implementing and integrating our
services, fluctuations in revenues and operating results, economic and
infrastructure disruptions, dependence on a small number of vendors and service
providers, litigation, and competition. Other factors that may affect these
statements are identified in our previous filings with the Securities and
Exchange Commission.
Vsource is a registered trademark of Vsource, Inc. vMarketing and Vsource
Foundation Solutions are trademarks of Vsource, Inc.
Fortune, Fortune 500 and Global 500 are registered trademarks of Time Inc.
Vsource disclaims any proprietary interest in the marks and names of others.
Vsource Media Relations Contact:
Cindy Kim
Direct: 858.456.4871
http://www.newscom.com/cgi-bin/prnh/20030910/VSCELOGO
http://photoarchive.ap.org/
DATASOURCE: Vsource, Inc.
CONTACT: Cindy Kim, Vsource Media Relations, +1-858-456-4871,
Web site: http://www.symphony.com.my/
http://www.vsource.com/