CALGARY, Alberta—Wi-Lan Inc. said it sold its controlling interest in Digital Transmission Systems to a DTS employee stock ownership program.
“DTS was a good acquisition in January 2000, but the market has changed and we now need to focus on our core wireless business,” said Hatim Zaghoul, president, chairman and chief executive officer of Wi-Lan.
In addition to the acquisition of common stock held by Wi-Lan, all DTS debentures and preferred stock previously owned by Wi-Lan will be converted into common stock immediately.
After the conversion, DTS common stock outstanding will be approximately 15.9 million shares, of which the ESOP will have rights to purchase approximately 10 million shares from Wi-Lan, the company said. The price per common share to be paid by the ESOP to Wi-Lan will be determined by a fairness opinion to be rendered from a third party within 30 days. DTS’ common stock has closed between 10 cents and 15 cents per share in the last 30 days of trading.
