21st Jun 2007 07:01
Telit Communications PLC21 June 2007 Press Release 21 June 2007 Telit Communications plc ("Telit" or "the Company") Completion of investment from BAMES The investment values the m2m business of Telit at €160 million Telit Communications plc (AIM: TCM), the global wireless communicationsdeveloper and distributor, announces today the completion of the initialinvestment by BAMES, a leading global electronics service provider based inVimercate, Milan, into Telit Wireless Solutions s.r.l. ('TWS'). BAMES wasallocated 5.625% of TWS's shares and in return, completed its initial investmentof €9 million into TWS and transferred to TWS shares representing 19.9% of theshare capital of its electronics manufacturing subsidiary, SEM. A further €7million will be invested in December 2008, at the same valuation of the m2mbusiness of Telit at €160 million. Initial details of the structure of the dealwere announced in the Company's Preliminary Results, released on 14 March 2007. The investment is coupled with a strategic manufacturing agreement - alreadyunderway - for the production of all of Telit's m2m modules, with certainexceptions, by SEM at competitive market prices for a period of at least fiveyears. TWS will also nominate a director to SEM's board. This strategicmanufacturing agreement will allow Telit to consolidate its Europeanmanufacturing into one geographical location, increasing control over its chainof supply resulting in enhanced quality, cost reductions and bettertime-to-market of its products. The proceeds from this investment will be used to further the execution ofTelit's strategy to focus on the rapidly growing m2m market. Commenting on the announcement, Oozi Cats, CEO of Telit Communications plc,said: "BAMES' investment into TWS, and the accompanying strategic agreementwith SEM, further validates the Company's technology in the m2m market. Theinvestment will enable us to continue to implement our strategy within thismarket, in which we have seen exceptional growth. We look forward to workingclosely with BAMES, and our agreement with SEM will enable us to do so." - Ends - For further information:Telit Communications plc Tel: 00 39 040 419 2491Oozi Cats, Chief ExecutiveMaya Lustig, VP Investor Relations Tel: +972 (3) 7914040 www.telit.com Seymour PierceSarah Wharry Tel: +44 (0) 20 7107 8000 www.seymourpierce.com Media enquiries:AbchurchChris Lane / Joanne Shears Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com About Telit Communications Telit is a leading global wireless communications technology company. ItsWireless Solutions division develops, manufactures and markets GSM/GPRS and CDMAmodules for machine-to-machine (m2m) applications which enable machines, devicesor vehicles to communicate via mobile networks. Telit modules are marketed anddeployed worldwide. Telit Communications plc is listed on the London StockExchange Alternative Investment Market (AIM) (ticker: TCM). For more informationabout the company, please visit www.telit.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TCM.L