Business
Acquisition Update
Acquisition Update.
About this update from Filtronic Plc
[{"type":"text","content":"\n RNS Number : 2018V Filtronic PLC 28 October 2010 \n \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL\n \nThis announcement does not constitute an offer to sell or issue, or the solicitation of an offer to buy or acquire, shares in the capital of the Company.\n \n \nFiltronic plc (\"Filtronic\", the \"Company\")\n \nProposed acquisition of Wireless Telecoms Business of Isotek\n \n \nFollowing the announcement on 30 July 2010 regarding a proposed offer for the entire issued share capital of Isotek (Holdings) Limited (\"Isotek\") (the \"Offer\"), Filtronic is pleased to announce the publication today of the formal offer document, prospectus and circular.\n \nThe prospectus and circular will be made available on the Company's website at http://www.filtronic.co.ukon 29 October 2010. The prospectus and circular have also been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do.\n \nHighlights\n \nStrategic\n§ Acquisition is in line with Filtronic's strategy to create a differentiated, high growth, wireless telecoms business through organic growth and selective acquisitions\n§ Provides entry to significant worldwide addressable market for base station filters\n§ Combines Filtronic's resources, experience and operational expertise with Isotek's highly differentiated intellectual property, brand and products\n§ Provides opportunity to transform the range and size of the Group's business\n§ Improves Isotek's ability to take advantage of strong growth in 3G and 4G mobile data traffic\n§ Creates an Enlarged Group with attractive scale to key customers\nFinancial\n§ Consideration of £4.35 million cash (subject to adjustment) plus 18,550,000 new Ordinary Shares \n§ £11.0 million implied consideration based on issue price of 35.75p \n§ Acquisition expected to increase turnover in year to 31 May 2012 (\"FY12\") by around £15 million\n§ Deal expected to be earnings enhancing in year to 31 May 2012 (\"FY12\") and significantly earnings enhancing in the second full year of ownership\n§ Shares represent circa 20 per cent of enlarged share capital, and will ...