Telit Communications in exclusive talks for automotive unit sale; investor Run Liang Tai Management ups stake, fuelling takeover chatter - report
23 JUN 2018
Telit Communications [LON:TCM] is believed to have entered exclusive negotiations to dispose of its automotive unit, Betaville reported, citing individuals claiming knowledge of the situation. The report said the prospective buyer may be Switzerland-based u-blox [SWX:UBXN] and is understood to be prepared to pay within the range GBP 100m-150m (USD 133m-199m).
The same report noted a disclosure from Telit shareholder Run Liang Tai Management of China, which said it has built up its 14% stake in the UK-based business to 15.2%. The move has fuelled speculation the Chinese company is preparing to launch a full or partial offer for Telit, the item reported.
Run Liang Tai Management owns an interest in Sunsea Telecommunications [SHE:0002313], a Chinese company which has recently been repositioning itself in the same market as Telit, as an enabler of the Internet of Things (IoT), the report said.