NZX-listed Rakon, which designs and manufactures advanced frequency control and timing solutions, has received a non binding offer.
High-tech company Rakon says it has received an unsolicited, non-binding, indicative acquisition proposal from a “credible” industry player at $1.70 a share.
The offer is at a 174 per cent premium to Rakon’s last traded price of 62c.
It values Rakon in total at $390.66 million.
The stock - which had been at two-and-a-half-year lows - went into a trading halt for the announcement.
Trade resumed late in the afternoon.
The offer was for cash via a scheme of arrangement or takeover offer.
“The proposal is incomplete and highly conditional and, as a result, there can be no certainty that any transaction will eventuate,” Rakon said.
The proposal was confidential when received and, ordinarily, the receipt of a proposal at such an early stage would not require disclosure, it said.
“However, Rakon has become aware that the existence of the proposal may be known by some shareholders, so is releasing the details to ensure that all shareholders are aware of them,” the company said in a statement to the NZX.
Rakon designs and manufactures advanced frequency control and timing solutions and says it is a world leader in its field.
Its three core markets are telecommunications, positioning and space and defence.
The company says its products are found at the forefront of communications, “where speed and reliability are paramount”.
Industrial projects dominate new supply, the study found, comprising 65% of new stock.