IEC Electronics (NASDAQ:IEC) Corp. and Creation Technologies Inc. jointly announced that CTI Acquisition Corp., an entity controlled by Creation, had extended the offer period of the previously initiated cash tender by the merger sub to buy all the issued and outstanding shares of IEC to 5:00 pm, New York City time, on October 4, 2021, unless further extended.
The tender offer was previously scheduled to expire at 5:00 pm ET on September 30, 2021.
On August 12, 2021, IEC announced it had signed a definitive merger agreement with Creation Technologies, that will see the latter acquire all outstanding shares of IEC. Creation has agreed to pay $15.35 per share in cash, which represents a fully diluted equity value of around $173.8 million and an aggregate enterprise value of $242.3 million, based upon net debt of $68.6 million.
READ: IEC Electronics announces merger with Creation Technologies; releases 3Q results
As contemplated by the terms of the merger agreement, Creation has now elected to extend the offering period to complete the financing of the transaction.
Computershare Trust Company NA, the depositary for the tender offer, has informed Creation that as of 5:00 pm, New York City time, on September 30, 2021, 7,483,017 common shares of IEC, representing around 70.1% of the issued and outstanding IEC shares, were tendered following the tender offer.
Stockholders who have already tendered their shares of IEC do not have to re-tender their shares or take any other actions because of the extension of the expiration of the tender offer, said the company.
Creation expects the tender offer will be accomplished promptly following the expiration of the offering period, subject to the satisfaction of the remaining conditions related to the tender offer detailed in the merger agreement.
The company said that DF King & Co. is the information agent for the tender offer.
The merger will combine IEC’s high-complexity, low-to-medium volume electronic manufacturing services focused on high-reliability applications within the aerospace and defense, medical and industrial end markets, with Creation’s focus on medium volume, high-reliability customers in the same segments.
Together, the new entity will have more than 4,000 employees in facilities located across North America and China.
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