STOCKHOLM, Sweden-Two Swedish mobile equipment suppliers announced plans to merge through a share exchange. LGP Telecom Holding, which manufactures radio coverage and data transmission products, said it will merge with antenna maker Allgon AB.
The combined group will have an annual turnover pro forma of about $290 million and more than 1,400 employees in 13 countries.
LGP offered 0.70 newly issued shares for each share of class B in Allgon and 0.77 newly issued shares for each share of class A in Allgon, saying the offer represents a premium of about 62 percent based on Allgon’s share price on Jan. 20. Allgon’s current shareholders will own 40.46 percent of the new group.
The companies said the combination will allow them to offer a more complete product range to their client base. The companies will focus on the European, North American and Asian mobile markets, they said. The merger would save about $8.9 million annually, the companies said.
The acceptance period is expected to run from Feb. 18 to March 10, and LGP is aiming to gain acceptance representing more than 90 percent of the votes and capital in Allgon.
“Allgon and LGP are both active on an international market for radio-based solutions and other products for mobile communications,” said the Allgon board of directors. “The board of directors believes that an integration of Allgon and LGP would give positive combination effects and improved resources to develop an internationally successful supplier of telecom products.”
