VANCOUVER – Pacific Insight Electronics is urging shareholders to reject an unsolicited acquisition offer from a Chinese company.
The ODM today confirmed receipt of a written buyout proposal from Chinese connector maker Shenzhen Kaizhong Precision Technology. Pacific Insight has already agreed to be acquired by Methode Electronics, whose offer Pacific Insight says is superior to Kaizhong’s.
As previously announced, Methode plans to acquire all of the issued and outstanding shares of Pacific Insight for cash consideration of $18.50 per share.
Kaizhong offered to acquire all Pacific Insight’s shares, a move Pacific Insight said is inferior because it is subject to Kaizhong shareholder approval, funded largely by bank financing and subject to completion of financing agreements, and subject to Chinese government approval.
“Having regard to the entirety of the materials received from Kaizhong, including all of the above, it is not accurate to describe the proposal received from Kaizhong as a Superior Proposal. Shareholders of the Company are therefore urged to take no action regarding the announcement by Kaizhong,” Pacific Insight said.
In a statement, Pacific Insight chief executive Stuart Ross said, "The directors of the company and I have unanimously confirmed that we continue to support the transaction with Methode as being in the best interests of the company and recommend that shareholders vote in favor of it at the meeting on Sept. 26, 2017."