(Sharecast News) - Telit Communications said it had received an all-share bid approach from Swiss rival u-blox valuing and was considering the proposal.
U-blox's proposal would lead to Telit shareholders receiving u-blox shares with a value of £2.50 for each of their Telit shares. The deal would lead to Telit shareholders owning about 53% of the combined internet of things technology company.
Telit shares closed at 168.20p on Thursday. The shares jumped 18% to 199p at 08:38 GMT on Friday valuing the company at £262m.
"The board of Telit is considering the proposal, together with its financial adviser, Rothschild & Co, and a further announcement will be made when appropriate," Telit said. "The proposal assumes any such merger would be structured as an offer for Telit by u-blox."
U-blox said talks were at an early stage and subject to due diligence but that its board believed a deal had "a strong strategic rationale and could result in substantial synergies for both organisations".
24 Mar 2021 09:55
Adjusted earnings improve as Telit focuses on cash generation
(Sharecast News) - Internet-of-things (IoT) technology company Telit reported a 10.2% fall in group revenues in its preliminary results on Wednesday, to $343.6m (£250.54m).
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