Rakon today announces that it is in advanced discussions with Centum Electronics Limited (“Centum”) to buy out their 51% shareholding in the India based company Centum Rakon India Private Limited (“CRI”) (“proposed transaction”). Rakon today has a 49% shareholding in CRI, the operation of which is a core part of Rakon’s manufacturing strategy.
Both parties’ management are continuing to pursue the proposed transaction and have signed a non-binding Terms Sheet in which Rakon would pay a consideration of USD5.5 million (staged over 18 months) for the 51% shareholding. Management are continuing to work on finalising a number of matters including due diligence, approvals and the terms of final agreements.
The proposed transaction will be subject to the satisfactory conclusions of discussions, the negotiation of transaction documents and various approvals, including the final approval of each parties’ Board of Directors. No deadline has been set to complete the proposed transaction.
Brent Robinson
Chief Executive Officer & Managing Director
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Contact:
Media Enquiries:
Louise Howe (Media Liaison)
021 206 0985
About Rakon
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 that provide the heartbeat of much of today’s communications and positioning technology. Rakon was founded in Auckland in 1967 and is listed on the New Zealand stock exchange. For more information visit www.rakon.com
About CentumCentum was founded in 1994 in Bangalore, India. Since then, Centum has rapidly grown into a diversified electronics company with operations in North America, EMEA and Asia. The company offers a broad range of products and services across different industry segments. It has continuously invested in strengthening its design & product development capabilities while developing deep domain knowledge in the segments it operates in. Centum has also established truly world-class manufacturing facilities with cutting edge infrastructure as well as a global supply chain capable of delivering products with high quality and reliability.
www.centumelectronics.com
