Pace Micro details unveiled

chris

UK set-top box maker Pace Micro Technology has revealed the structure of its reverse takeover of Royal Philips Electronics’ set-top box division. Pace Micro will be releasing the full investor prospectus this morning (April 1, London time), but in essence the details show that Pace is now paying a little less for Philips than first planned. Originally, it offered £68m (then “up to” €95m). Today’s price is £63m (€88m).

To generate this sum Pace will issue 64.4m new shares, worth about £59m to Philips, and pay the balance of £5m in cash. This means that at the close of the transaction Philips will end up owning about 21% of Pace in its enlarged state.

Approval for the transaction will be sought from shareholders on April 16. Philips currently has 335 staff, mostly working in France, and last generated revenues of €415.7m (£328m). The benefits, say Pace, include a broad customer base with limited overlap, and the overall plan is for Pace to apply its now proven management and engineering model to the larger business.


Source: Rapid TV News

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