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LONDON (Alliance News) - Cohort PLC on Monday said the new Portuguese government has indicated it wants to keep part of its stake in Empresa de Investigação e Desenvolvimento de Electrónica SA, which the technology firm had agreed to acquire in August 2015.
Cohort said the Portuguese competition authority has approved its proposed acquisition of a controlling stake in EID, which supplies advanced electronics, communications and command and control products and systems to the global defence market.
The update comes after Cohort said in late January it expected to receive competition approval and complete the acquisition of the 57% stake held by private investors in EID by the end of February.
"The new Portuguese government has indicated that it wishes to retain part of its existing holding in the company. Discussions are underway to agree the terms of the relationship between the two future shareholders, and Cohort will make a further announcement in due course," the company said.
Cohort agreed to acquire the entirety of EID for EUR19 million in August 2015. The agreement was later revised, with Cohort to acquire the 57% stake from private shareholders for EUR10.8 million.
Autumn elections in Portugal saw Prime Minister Pedro Passos Coelho's alliance lose its absolute majority in parliament. Passos Coelho then was toppled in a no-confidence vote and replaced as premier by Socialist Party leader Antonio Costa.
Shares in Cohort were up 0.9% at 343.00 pence on Monday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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