Harju Elekter stands to make €25.8 million from sale of PKC shares
Should listed Estonian electrical equipment maker Harju Elekter accept Indian firm Motherson Sumi's offer for its shares in PKC, it would earn €25.8 million from the transaction.
Harju Elekter has owned a stake in the Finnish PKC Group since 1994. At the end of last year, it owned 1.1 million shares, or roughly 4.6 percent of the company.
The shares of PKC Group are reflected at their market value on the balance sheet of Harju Elekter. PKC closed at €15.80 on Dec. 30, which puts the value of the investment at €17.3 million. As calculated on the basis of the offer price, the investment would now be worth €25.8 million, representing a profit of €8.5 million compared to the end of last year.
The price of Harju Elekter shares took a leap of 9.9 percent to €3.33 in early trading on the Tallinn Stock Exchange, which means that the company's market value increased by €5.3 million to €59.1 million euros compared to Thursday's closing.
India-based car parts marker and engineering group Motherson Sumi Systems Ltd made an offer to PKC shareholders to buy PKC shares at a price of €23.55 per share.
Motherson and PKC agreed on Jan. 19 to combine their wiring harness businesses. In order to implement the plan, Motherson made a buyout offer to all PKC shareholders. The transaction will cost a total of €571 million.
Shares of PKC jumped 49 percent to €23.29 on the Helsinki Stock Exchange in the morning. Compared to PKC's closing price on Thursday, Motherson's offer of €23.55 represents a premium of 51 percent.
Editor: Editor: Aili Vahtla
Source: BNS