LONDON (Alliance News) - Telit Communications PLC on Friday said it agreed to extend the deadline for the completion of sale of its automotive division to February 20.
The machine modules maker expected the sale to close on Thursday, but said it is experiencing a delay finalising the debt arrangements to support the transaction.
In mid-July last year, Telit agreed to sell its automotive division to TUS International Ltd for USD105 million. In mid-December, TUS said it is awaiting receipt of the permission of the Hong Kong Stock Exchange for publishing of TUS's shareholder circular with regard to approval of the transaction.
On Friday, the autonomous driving cloud control solutions provider TUS confirmed that it has received shareholder approval for both the transaction and the fundraising related to the financing of the transaction.
"We are pleased to have obtained shareholder approval and remain committed to the completion of this transaction," said TUS International President Sean Shen.
"We look forward to announcing the completion of the transaction within the next three weeks," added Telit Executive Chair Paolo Dal Pino.
Telit shares were trading 3.8% lower on Friday at 135.40 pence a share.