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Telit says buyer of its automotive division expects to be in a position to complete transaction shortly

The buyer has indicated to Telit that it is required to (i) take certain administrative steps to comply with banking regulations in China and (ii) formalise financing arrangements for a part of the overall consideration
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The AIM-listed group said the buyer has indicated it expects to satisfy these steps in the coming days

Telit Communications PLC (LON:TCM) rose on Thursday after the group said it expects the buyer of its automotive division, TUS International Limited to be in a position to complete the transaction shortly.

The global enabler of the Internet of Things (IoT), pointed out that, prior to completion, the buyer has indicated to Telit that it is required to (i) take certain administrative steps to comply with banking regulations in China and (ii) formalise financing arrangements for a part of the overall consideration.

READ: Telit up as IoT firm agrees to sale of automotive division for US$105mln

The AIM-listed group said the buyer has indicated it expects to satisfy these steps in the coming days.

It added: “The buyer has taken steps to provide the Board with comfort that it will be in a position to proceed to completion including having provided evidence of the availability of funds that remain subject to formal regulatory approval.”

Telit said on 27 December 2018, the timetable for the US$105mln cash acquisition of its automotive division by TUS was that it was expected to complete by 31 January 2019.

Initially, the transaction, announced at the end of July, was expected to complete by the end of 2018.

In afternoon trading on Thursday, Telit shares were 4.6% higher at 123.50p. Based on last night’s closing price, Telit’s market capitalisation was £154.94mln.

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