Volex to pay deferred consideration after Murat Ticaret hits targets
By Josh White
Date: Friday 03 Jan 2025
(Sharecast News) - Critical power and data transmission products manufacturer Volex announced on Friday that Murat Ticaret Kablo Sanayi, acquired by the company in 2023, had surpassed the EBITDA targets stipulated in the acquisition agreement for the first 12 months post-completion.
The AIM-traded firm said that as a result, the first tranche of deferred consideration was now payable to Murat Ticaret's four former owners.
Under the terms of the agreement, Volex said it would satisfy 50% of the deferred consideration through the issue of shares, with the total payment comprising €10m in cash and 2,878,830 new ordinary shares of 25p each.
Application for the new shares to be admitted to trading on AIM had been submitted, with admission and dealings expected to start on 8 January.
Following the admission of the new shares, Volex said its total issued share capital would increase to 184,529,938 shares, each carrying one vote.
The company confirmed it holds no shares in treasury.
Volex said the deferred consideration aligned with the acquisition terms outlined in its announcements on 22 June and 1 September 2023, which also detail additional future payments linked to the Murat Ticaret acquisition.
At 1253 GMT, shares in Volex were up 0.07% at 273.68p.
Reporting by Josh White for Sharecast.com.
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