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.
Chief Executive Officer & Managing Director
Louise Howe (Media Liaison)
021 206 0985