Business
Merger discussions with majority shareholder
Merger discussions with majority shareholder.
About this update from Mti Wireless Edge Ltd
[{"type":"text","content":"\n \nRNS Number : 6165H MTI Wireless Edge Limited 14 March 2018 \n\nDissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)\n14 March 2018\nMTI Wireless Edge Ltd\n(\"MTI\" or the \"Company\")\nMerger discussions with majority shareholder\n \nMTI Wireless Edge Ltd (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, announces that it is in preliminary discussions with its majority shareholder, MTI Computers & Software Services (1982) Ltd (\"MTIC\"), regarding a potential merger between the two companies (the \"Proposed Transaction\"). MTIC, whose shares are listed on the Tel Aviv Stock Exchange, currently holds 52.2% of the Company's issued ordinary shares. \nThe Proposed Transaction is still being discussed and would be subject to various regulatory and corporate approvals, but if successful would see MTIC (including its business and assets) merged into the Company, following which MTIC would cease to exist. The Company would remain as the surviving entity and its ordinary shares would continue to be traded on AIM, a market operated by the London Stock Exchange plc (\"AIM\"). As consideration for the merger, the current shareholders of MTIC would receive new ordinary shares in the Company (the \"Consideration Shares\"). The number of Consideration Shares to be issued to the shareholders of MTIC would be calculated based on independent third-party valuations of the Company and MTIC, which have yet to be carried out1. \n \nThe key benefits the Proposed Transaction are expected to include:\n1. Creating a larger company - the merged company will have revenues which are approximately 30% above the Company's current revenues.\n2. Broadened business base - the merged company would still be focused on Radio Frequency and Microwave solutions but would add two divisions that would diversify the business (being Representation Radio Frequency and Microwave solutions in Israel and Russia and System Engineering). \n3. Alignment of shareholder interests and the elimination of potential conflicts of interest.\n4. Costs savings and efficiency - the merged company wo...