An Adelaide electronics manufacturer will be bought out in an $80 million private equity deal
An Adelaide electronics firm has attracted a takeover offer of $80 million.
SA Business
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Legend Corporation has accepted a $79.6 million takeover bid from Adamantem Capital which will take the listed company private.
The Adelaide-based electronics manufacturer and distributor’s shareholders will receive 36.5c per share, compared with the last closing price of 31c.
Legend chairman Bruce Higgins said the offer was a “compelling value and liquidity opportunity for all legend shareholders relative to recent trading prices and volumes’’.
The takeover has been unanimously supported by the Legend board.
Chief executive Bradley Dowe owns 28.74 per cent of the company.
He said in a statement to the ASX that Adamantem’s bid was an endorsement of the company’s business model and the commitment of its employees.
Sydney-based industrial products and electronics executive, Gary Uren, will take over as CEO following the takeover.
Adamantem said: “The proposed acquisition is Adamantem’s second public-to-private transaction and will be the fund’s sixth investment in its portfolio since launching in 2017.
“The offer values Legend’s fully diluted equity at approximately $79.6 million, and implies an enterprise value of $100.6 million’’.
Adamantem Capital managing director, Rob Koczkar, said Legend was attractive for its long history of innovation and established position as a leading manufacturer and distributor of components for a variety of end markets including electrical, gas and plumbing, where it is a certified and preferred wholesale supplier.
“We are delighted to have the unanimous support of Legend’s board on our proposal. We are committed to continuing the growth of Legend under private ownership, supporting its people and customers, and building on its history as a leading provider of engineering solutions to a range of industries,’’ he said.
Legend shareholders will have an opportunity to vote on the deal, which is expected to be completed in the second half of 2019, if all conditions are met.
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