The Board of Sepura has requested that the UK Panel on Takeovers and Mergers extend for a second time the deadline for a decision over a possible takeover of the company by Chinese professional mobile radio (PMR) manufacturer Hytera Communications.
This has been granted and Hytera is now required to make a firm offer or withdraw by 5pm, 16 December 2016. However, this deadline may be extended with the consent of the UK Panel on Takeovers and Mergers yet again.
Hytera issued the following statement (as translated from Mandarin to English) to the Shenzhen Stock Exchange this morning (12 December 2016).
“Positive discussions are still continuing between the Company and Sepura in respect of a possible offer for the entire issued and to be issued share capital of Sepura. If the Company finally makes a formal offer, it is expected to constitute a material contract. If the Matter makes further substantial progress, the Company will timely release relevant information.
It continued: “Whether the Company will make a formal offer is subject to significant uncertainties. If the Company finally makes a formal offer which is currently subject to significant uncertainties, the effectiveness and implementation of the Matter will be subject to the approvals by the board and shareholders of both parties as well as a range of regulatory approvals which involve significant uncertainties.”
The latest move follows the announcement on 4 November 2016 that the two companies were in preliminary talks. On 20 November, Sepura revealed that it has asked the UK City Code on Takeovers and Mergers to extend the deadline by a week to 9 December 2016. On that day, Sepura asked for a further seven-day extension.
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