Camtek Climbs as Chroma Buys

Camtek Ltd. (NASDAQ:CAMT) rose Monday after Chroma agreed to acquire 20.5% stake in Camtek at $9.50 per share.

Chroma, a leading Taiwanese high precision test and measurement equipment provider, will acquire a total of 6,117,440 Camtek shares from Priortech Ltd., the controlling shareholder of Camtek, for $58.1 million, and a further 1,700,000 new shares to be issued by Camtek, for $16.2 million.

The total cash consideration to be received by Camtek and Priortech amounts to $74.3 million, and is calculated based on a share-price of $9.50 per Camtek share, which reflects a 29% premium on Camtek's closing price as of February 8.

After the closing of the transaction, Chroma will hold approximately 20.5%, while Priortech will hold approximately 24% of the total issued and outstanding shares of Camtek.

A voting agreement has been signed between Priortech and Chroma according to which the parties will vote together in Camtek's shareholders' meetings. According to the voting agreement, after the closing of the transaction, Chroma will be entitled to two seats on Camtek's Board of Directors and Priortech will be entitled to three seats.

The transaction is expected to close by the end of the second quarter of 2019, subject to the approval of Camtek's shareholders, as well as approvals by certain regulatory bodies, including the Committee on Foreign Investment in the United States (CFIUS) and the Taiwan Overseas Foreign Investment Commission (MOEAIC), and is also dependent on other customary closing conditions.

Shares gained 80 cents, or 10.8%, to $8.18