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Hardware & electrical equipment

Telit confirms “numerous parties” interested in snapping up its automotive division

Press reports over the weekend suggested that a bid of up to £150mln may be forthcoming for Telit’s automotive division, and the company said on Monday it has received a “range of proposals”

Internet of Things company Telit Communications Plc (LON:TCM) has confirmed that “numerous parties” have expressed an interest in acquiring its automotive division.

A report by The Times over the weekend suggested that Swiss semiconductor maker U-blox was eyeing up a £150mln bid for the business, while it also said that a number of other companies were circling, including a consortium working with Uber and Intel.

READ: Telit confirms automotive division on the block

AIM-quoted Telit – which supplies its technology to companies such as Tesla Inc (NASDAQ:TSLA) – added that although it had received a “range of proposals”, they are all still subject to due diligence.

“There can be no certainty at this stage that the division will be sold nor as to the terms of a potential sale,” it said in a statement on Monday.

READ: Telit's deviceWISE platform chosen for PST's telematics push

Back in October the company – now valued at just over £200mln – revealed it had brought in NM Rothschild to, among other things, help it seek out potential buyers for the automotive business as it looks to prune its product lines and cut its cost base.

In the update on Monday, Telit also confirmed that it is not looking sell off any of its other divisions, “all of which remain central” to its strategy going forward.

In mid-morning trading, Telit shares were up nearly 3% at 162p.

-- Adds share price --

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