Acquisition funds to help grow machine-to-machine communication market
By Susanna Moon
Chicago, Jan. 28 - Telit Communications plc said it will sell £19.04 million shares in a conditional placement to finance the acquisition of Motorola m2m from Motorola for $26 million.
The company plans to place 23,793,750 common shares at 80p.
The offer price represents a premium of 14.29% to the closing mid-market price of 70p on Jan. 27.
Investec is the underwriter.
Telit has applied to list the notes on the London Stock Exchange.
The placement is conditional on shareholder approval.
"This acquisition is a strategic milestone for our company. It will allow us to pursue the further expansion into the fast-growing machine-to-machine communication market and to continue to deliver on our strategy to become the leading provider of machine-to-machine communication solutions worldwide," Oozi Cats, chief executive officer of Telit said in a press release.
Telit is a London-based machine-to-machine wireless technology company.
Motorola m2m's headquarters are in Tel-Aviv, Israel, and its products are manufactured in Israel, China and Brazil.
| Issuer: | Telit Communications plc
|
| Issue: | Stock
|
| Amount: | £19,035,000
|
| Shares: | 23,793,750
|
| Price: | 80p
|
| Warrants: | No
|
| Pricing date: | Jan. 28
|
| Stock symbol: | London: TCM
|
| Stock price: | 69p at close Jan. 28
|
| Market capitalization: | £56.85 million
|
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