NEW YORK-Intek Diversified Corp., a Princeton, N.J.-based wireless carrier and equipment manufacturer, announced Dec. 22 the terms of an agreement to issue a new class of preferred stock to Securicor Communications Ltd., its majority shareholder.
Under the agreement, scheduled to be completed by year-end, Securicor Communications will pay about $12.5 million in cash for Intek Series A preferred stock, which is redeemable in June 2003 and will pay 11.5 percent interest upon redemption.
Securicor has the right to convert its preferred stock holdings into common stock any time the price of Intek common stock exceeds $6 per share for 20 consecutive trading days. Intek may do likewise to Securicor’s preferred stock holdings if Intek common stock trades above $9 per share for the same period.
Under terms of the agreement, Securicor Communications also will make a $2.5 million additional investment in Intek.
Securicor Communications is a subsidiary of Securicor plc, a $2.5 billion company based in the United Kingdom that has interests in security services, parcel distribution and wireless communications.
Intek operates specialized mobile radio systems in the United States through its Roamer One subsidiary, which holds 220 MHz licenses covering a population of 175 million in 120 markets.
Midland USA, another subsidiary, distributes land mobile radio products manufactured by Intek and others through authorized dealers and resellers, which also market Roamer One services.
Radiocoms, a U.K.-based subsidiary, manufactures LMR products incorporating Intek’s patented linear modulation technology. The spectrally efficient narrowband technology offers high-speed data rates for trunked radio systems and can overlay digital and analog radio transmissions.
