Search Share Prices
MTI Wireless edges toward merger with majority shareholder MTIC
Flat panel antenna manufacturer MTI Wireless Edge is in preliminary discussions with its majority shareholder, MTI Computers & Software Services (MTIC), for a merger between the two companies.
The potential agreement with MTIC, which currently holds 52.2% of the MTI Wireless Edge's issued ordinary shares and would cease to exist after the possible merger, was expected to yield a larger company with approximately 30%more revenues.
MTI Wireless edge would continue to exist and its ordinary shares would continue to be traded on AIM, the company said in a statement.
In its statement, the Israeli company said: "The merged company would have its shares traded on one stock exchange and this would save significant costs and allow management to spend more time on developing the combined business."
The merged company would also have a broadened business base due to the adding of divisions representing radio frequency and microwave solutions and system engineering in Israel and Russia.
"At the end of the merger process it is expected that non-controlling shareholders would hold an increased proportion of the company's ordinary shares with more diversified holdings, thus assisting liquidity," it said.
The proposed merger would be subject to approval from various regulatory and corporate bodies including the Israel Securities Authority, the Israeli Tax Authority and the Israeli court.
As of 1231 GMT, MTI Wireless Edge's shares were up 5.56% at 28.50p.