Micronet Enertec Technologies, Inc. (NASDAQ: MICT) shares rose Tuesday after the company reported a strategic transaction with 14.89% stakeholder BNN Technology.
The Montvale, New Jersery-based Micronet and BNN announced Monday that BNN will seek to acquire, through a third-party cash tender offer at a price of at least $1.65 (the price per share BNN paid to a MICT shareholder to purchase the 14.89%), an additional approximately 35% stake in MICT, with a view to owning in aggregate at least 50.1% of the company's issued shares.
Both BNN and an unrelated Third Party, a leading Platform as a Service (PaaS) provider of transaction technology, shall be acquired by MICT in exchange for cash and the issuance of shares. The Third-Party acquisition is pursuant to a Heads of Terms, which BNN has previously entered into with the Third Party. The overall combined entity will be cash flow positive.
All of the shares of Micronet Tel Aviv currently held by MICT would be spun off to MICT shareholders that remain shareholders of MICT after the tender offer. Micronet Tel Aviv is a publicly traded Tel Aviv company owned 49.89% by MICT
MICT will raise a minimum of between $26 -$36 million from major global institutional investors.
BNN is a U.K. registered technology, content and services company with a focus on the Chinese market, and MICT is a developer, manufacturer and provider of mobile computing platforms for the mobile logistics management market in the US, Europe and Israel.
Shares in MICT jumped 39 cents, or 31%, Tuesday morning to $1.65.
Tech Insider
