Shareholders of Sepura Plc, the UK professional mobile radio (PMR) solutions provider, agreed yesterday (9 February 2017) afternoon to a takeover by Chinese PMR company Hytera Communications Corporation. A Sepura company announcement was made to the London Stock Market to this effect.
At the Court Meeting, a majority in number of Scheme Shareholders who voted (either in person or by proxy), representing 97.07 per cent, voted in favour of the resolution to approve the Scheme. The resolution proposed at the Court Meeting was passed on a poll vote.
A statement issued by Sepura yesterday said: ‘The news reflects the belief of the Sepura shareholders that the bid from Hytera meets the value of the company. The acquisition demonstrates the confidence in Sepura’s technology and operations. The complementary strengths of the two companies will create a best-in-class, industry-leading organisation, and provide customers and partners with an exceptionally broad solution offering.’
The statement pointed out that at this time, approvals from the competition authorities in Spain and Germany remain outstanding, and Sepura and Hytera are currently liaising with the relevant authorities in respect of these outstanding conditions to the Acquisition.
As stated in the Scheme Document, the Court Hearing to sanction the Scheme will be held following the satisfaction or waiver of these conditions and is now, therefore, expected to take place in early to mid-March 2017, rather than 16 February as previously indicated. Sepura will announce a further update on timing for the closing of the Acquisition in due course.
It is not yet clear how Hytera intends to integrate Sepura or what exactly it sees as the main benefit of the deal. Sepura is particularly strong in its heritage TETRA technology portfolio and has some 4G LTE technology following its purchase of Spanish PMR firm Teltronic. Hytera is strong in DMR and PDT radio technology, but overlaps with Sepura in its TETRA portfolio.
Along with Motorola Solutions, Hytera and Sepura are the largest manufacturers of TETRA radio equipment and terminals. The combined might of Hytera and Sepura will therefore provide a larger entity to compete with market leader Motorola.
See also: Hytera makes offer to acquire rival PMR firm Sepura