Shenzhen Kaizhong Precision Technology Co. Ltd. (SSE: 002823) has withdrawn its offer to acquire Pacific Insight Electronics Corp. (TSX: PIH) for $24.35 per share, valuing Pacific Insight at $189.5 million on a fully diluted basis.
Shenzhen Kaizhong Precision Technology made in the announcement on September 6, 2107. Kaizhong said the acquisition would be funded by Kaizhong using its available cash on hand and the proceeds of a loan facility which has been committed by GF Securities Co., Ltd.
In its announcement, Shenzhen Kaizhong Precision Technology said it has not be able reached agreements with various parties and because of complexities of cross-border transaction, in the best interest of its shareholders, its board decided to withdraw its offering.
Pacific Insight Electronics said since the announcement, neither Kaizhong nor its advisors have contacted the company or any of its advisors.
Pacific Insight Electronics is proceeding with Methode Electronics, Inc. (NYSE: MEI) arrangement pursuant to which Methode will acquire all of the issued and outstanding shares of Pacific Insight Electronics for cash consideration of $18.50 per share for total consideration of approximately $144 million.
A special meeting of Pacific Insight’s security holders will be held on Tuesday, September 26, 2017 at 10 a.m. in Vancouver. Assuming that the arrangement is approved at the meeting, Pacific Insight is currently scheduled to return to court on September 27, 2017 to seek a final order to implement the arrangement.
photo credit: Pacific Insight Electronics