MTI Wireless Shares Rise As Merger Talks With Israeli Shareholder

14th Mar 2018 09:55

LONDON (Alliance News) - Shares rose in MTI Wireless Edge Ltd on Wednesday after it said it currently is in merger discussions with its majority shareholder, Tel Aviv-listed MTI Computers & Software Services, which holds a 52% interest.

Shares in the flat panel antenna manufacturer and irrigation solutions provider rose 13% at 30.40 pence on Wednesday.

The proposed merger is currently in discussion and would be subject to corporate and regulatory approvals if agreed. If so, the deal would see MTI Computers's business and assets merged into MTI Wireless, and the former would cease to exist, while the latter would remain listed on AIM.

Approvals are required from the Israeli Securities Authority, Israeli court and Israeli Tax Authority, and also from the shareholders of both companies.

The enlarged company would have revenue 30% above MTI Wireless's current revenue, at USD26.4 million for 2017. The merger also would broaden the company's business base and increased liquidity, as well as costs savings and efficiency from being traded on one stock exchange.

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Related Shares:

Mti Wireless