PORTAGE, MICH. — Stock market gyrations affecting suppliers to the cell-phone industry have prompted revisions in the pending merger between Eimo Oyj of Lahti, Finland, and Triple S Plastics Inc.
The changes are "definitely to the benefit of Triple S shareholders," Daniel Canavan, Triple S chairman, said in a telephone interview. "The deal was in jeopardy."
Triple S will have three of seven board seats and a 39.3 percent ownership of the combined company's shares and options.
When the deal was announced in July, Triple S was getting one board seat and ownership of 33-37 percent of the company, which will continue under the Eimo name and will be based in Finland. Triple S recently moved its headquarters to Portage from Vicksburg, Mich.
Eimo and Triple S extended the expiration date for the transaction to June 30 from Feb. 28. Closing could occur by the end of March.
Completing the transaction took longer than expected, and heavy year-end traffic through the Securities and Exchange Commission "put us on the back shelf," Canavan said.
"We used to have a complicated formula, but we changed to a single exchange rate," Canavan said.
Those joining the Eimo board will include Canavan; A. Christian Schauer, Triple S chief executive officer; and Evan Harter, an outside director of Triple S. Current Eimo directors Markku Sulonen and Elmar Paananen are expected to leave the board to keep the number of outside members at a majority. Elmar Paananen's father, Jalo Paananen, is Eimo's chairman.
Eimo and Triple S are major suppliers to the mobile communications companies, including market-dominant, Espoo, Finland-based Nokia Oyj.