REL: 1521 HRS Rakon Limited
TRANSACT: RAK: Rakon realises gain on partial sale of Thinxtra investment
12 October 2017
RAKON LIMITED (NZX: RAK)
Rakon realises gain on partial sale of Thinxtra investment
Rakon today announces the sale of 199,242 shares it holds in the Australian
internet-of-things (IoT) company, Thinxtra Pty Limited. The total
consideration received will be AUD 3.0 million, netting to around AUD 2.8
million after costs.
The sale of shares is conditional upon the completion of Thinxtra's
pre-emptive rights process for all shareholders. This process is expected to
conclude by the end of November.
The majority of shares have been sold to new Thinxtra shareholders who missed
out on the Thinxtra Series-B capital raising, recently completing as
over-subscribed. The new shareholders are institutions having a strategic
interest in the IoT.
Rakon will realise a profit on its initial investment of AUD $1.8 million
before costs, representing a return on initial investment of 257%.
Following on from the company's announcement in August on expected earnings
for FY2018, the company now expects to report Underlying EBITDA for FY2018 in
the range of between $10.7 million and $12.7 million (FY2017: $4.0 million).
As was noted at the time, this Underlying EBITDA will deliver a return to
positive net profit after tax.
Rakon CEO Mr Brent Robinson said, there may be a demand for Rakon to sell
more shares and we will consider that as it arises. We remain committed to
being a substantial investor in Thinxtra and are positive about the company,
the IoT and future returns from our investment. After the completion of the
sale of shares being announced, Rakon will hold 785,407 shares in Thinxtra,
Proceeds from the sale of shares will initially be used to retire debt.
Chief Executive Officer & Managing Director
Louise Howe (Media Liaison)
021 206 0985
Rakon is a global high technology company and a world leader in its field.
The company designs and manufactures advanced frequency control and timing
solutions for telecommunications, global positioning and space and defence
applications. Rakon products are found at the forefront of communications
where speed and reliability are paramount. The company's products create
extremely accurate electric signals which are used to generate radio waves
and synchronise time in the most demanding communication applications. Rakon
has five manufacturing plants including two joint venture plants and has five
research and development centres. Customer support centres are located in ten
Rakon is proud of its New Zealand heritage; it was founded in Auckland in
1967. It is a public company listed on the New Zealand stock exchange, NZSX,
ticker code RAK.
End CA:00308607 For:RAK Type:TRANSACT Time:2017-10-12 15:21:48