Hytera Agrees to Buy Norsat for US$69M
Wednesday, May 31, 2017 | Comments

Norsat International entered into an amended arrangement agreement with Hytera Project, a subsidiary of Hytera Communications, under which Hytera will acquire all the issued and outstanding shares of Norsat for US$11.25 in cash per share, pursuant to a court-approved plan of arrangement. The proposed transaction values Norsat at an equity value of about US$69 million.

“We are pleased that we were able to conclude a revised agreement with Hytera,” said Fabio Doninelli, director and chairman of the board for Norsat. “We continue to believe this all-cash transaction offers Norsat shareholders immediate liquidity and certainty of value. We thank our shareholders for their patience and support during the process, a process that has ultimately surfaced significant value for all Norsat shareholders.”

The cash consideration per share represents a premium of 77 percent over the unaffected trading price of the shares on the Toronto Stock Exchange, on Sept. 16, 2016, the last trading day prior to the announcement on Sept. 19, 2016 by Privet Fund Management, a shareholder of Norsat, of its interest in acquiring Norsat.

The independent directors unanimously determined that the arrangement is in the best interests of Norsat and its shareholders. The arrangement will be subject to a number of customary conditions, including the approval of Norsat security holders and certain regulatory approvals included under the Investment Canada Act.

The transaction will require the approval of at least 66.66 percent of the votes cast by security holders at the meeting. If approved by security holders, and subject to the receipt of all required regulatory approvals, the transaction is expected to close in the third quarter.

Norsat first announced the new offer from Hytera last week.

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On 6/7/17, James Beattie said:
This latest acquisition announcement from Hytera shows the continual wave of takeovers and purchases from the Far East of key highly technical and leading-edge European companies that dominated their sector but cannot compete with the short-term financial gain proposed by the Eastern long-term business strategy for technological dominance. Further recent examples are the purchase of ARM by Softbank, which is also getting into the satellite business although a set back to this occurred at the start of the month, and the Hytera acquisition of Sepura for interestingly the current share price at the time and not the 77 percent over the trading price as with Norsat. This shift in intellectual property power is not a bad thing for keeping economies and businesses active but will mean changes in attitudes and business cultures that some people will not be used to and will need to adapt. Interesting times especially as how it will affect the purchases of products in the future on critical systems and smart cities. At one time it was the dominance of American products even if built in the East that was a concern to some countries' Ministry purchases. Will this now move to concern on how much is controlled and owned by the East and will need to be reviewed especially as we address the internet of things (IoT) security problems that already exist? Within the information, communications and technology (ICT) industry is the current strategy that Western organizations are focusing and sticking their heads in the cloud-based environment and further technology innovations while the East dominate the physical world. Only the future will reveal.

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