LONDON - Volex plc (AIM:VLX), a global manufacturer specializing in power and data cabling products, has confirmed that Murat Ticaret Kablo Sanayi A.Ş. has surpassed the EBITDA (earnings before interest, taxes, depreciation, and amortization) goals established in their acquisition agreement. This performance milestone triggers the payment of the first tranche of deferred consideration to the former owners of the Turkish firm.
Under the terms agreed upon during the acquisition, which was initially announced on June 22, 2023, and finalized on September 1, 2023, the deferred consideration is split between cash and shares. Volex will distribute €10 million in cash and issue 2,878,830 new ordinary shares, each valued at 25 pence. The new shares are scheduled to be admitted for trading on the London Stock Exchange (LON:LSEG)'s AIM market at 8.00 a.m. on January 8, 2025.
Once these new shares are admitted, Volex's issued share capital will increase to 184,529,938 ordinary shares, each with one vote and no shares held in treasury. Shareholders can use this updated share count as a reference for notifying changes in their stake in the company's capital.
The successful achievement of the EBITDA targets by Murat Ticaret reflects positively on the acquisition's progress. Further details regarding the remaining deferred consideration tied to the acquisition will follow the original announcement made on June 22, 2023.
This financial milestone in the integration of Murat Ticaret into Volex's operations is significant for the company and its investors. The information in this article is based on a press release statement issued by Volex plc.
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