Telit Communications PLC (LON:TCM) shares surged on Friday as the internet of things (IoT) specialist confirmed an approach from Swiss computing firm u-blox Holding AG regarding a possible all-share merger.
The AIM-listed firm said that under the proposal Telit shareholders will receive u-blox shares with a value of 250p for each Telit share they already own, a 47% premium to the company’s closing price on Thursday, and will result in Telit shareholders owning 53% of the combined entity.
Telit said it is considering the proposal and that a further announcement will be made “when appropriate”, although there is no certainty that the merger will occur.
The news of the merger discussions follows more takeover talk earlier this month when Telit confirmed a preliminary approach from asset manager DBAY Advisors Limited regarding a possible offer. The firm also previously rejected a takeover offer from Lantronix Inc (NASDAQ:LTRX), a US IoT and cloud-based device management specialist.
Telit shares jumped 18.2% to 198.8p in early trading.