Providential Holdings to Acquire Majority Interest in Korean Manufacturer of Wireless Communication Equipment
HUNTINGTON BEACH, Calif.
Providential Holdings
Timothy Pham, 714-843-5456
http://www.phiglobal.com
Acquisition Expected to Be Accretive to Earnings
Providential Holdings, Inc. (OTC BB: PRVH.OB - News) (Berlin: PR7) (WKN 935160), www.phiglobal.com, has entered into a letter of intent to acquire a 51% equity interest in RF Korea, Inc. (www.rfkorea.com), a Korean company engaged in the manufacturing and marketing of wireless communication equipment.
According to the letter of intent, Providential will pay RF Korea $1.5 million in cash and a $5 million non-interest bearing note due and payable six months after closing. Providential will also assist in bringing RF Korea public in the US and arranging a $10 million funding to grow its business. The consummation of this transaction is subject to further due diligence review, the signing of a definitive agreement by February 21, 2005, and the approval of the board of directors of both companies.
RF Korea's revenues were $19.7 million for 2004 and are expected to top $27 million for 2005 with net profits of approximately 18-20 percent of sales.
RF Korea, Inc.'s products and services include broadcast systems, high frequency signal generators and amplifiers, high frequency transmitting and receiving modules and electrical transmission parts for other communication equipment, optical sensors, installation and maintenance of communication equipment, and exports and imports of wireless communication equipment. RF Korea's major customers include Singapore Technologies Electronics, Ltd., SK Telecom (www.sktelecom.com), and KTF (www.ktf.co.kr).
For further information about RF Korea, please visit: www.rfkorea.com
About Providential:
Providential Holdings (www.phiglobal.com) and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A advisory services, cutting tools, and international markets. The Company acquires and consolidates special opportunities in selective high-growth industries to create additional value, acts as an incubator for emerging companies and technologies, and provides financial consultancy and M&A advisory services to U.S. and foreign companies.
Safe Harbor:
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
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