SPOKANE VALLEY, WA -- Key Tronic said it wasn't aware of any outside interest in acquiring the EMS company, and it will continue to execute its existing strategic plan.
On Sept. 5, EMS/ODM Cemtrex announced it was interested in buying Key Tronic, citing overlap in the firms' respective businesses.
Prior to the filings, Key Tronic said, it was unaware of Cemtrex's interest and had not had any communications with the suitor. "Based on (Cemtrex's) current SEC filings, Key Tronic understands that Cemtrex has not commenced a formal exchange offer and that any such offer would require additional SEC filings by (Cemtrex)," Key Tronic said.
Key Tronic did, however, question the valuer of Cemtrex's bid. The purported offer was a straight stock exchange at a 1:1 ratio. Noting a disparity in the respective companies' stock prices, Key Tronic said the purported offer would represent a discount of almost 54% per share.
Absent a formal offer, Key Tronic said it is business as usual. "Key Tronic remains optimistic about growth opportunities and our competitive strengths as discussed in our recent earnings release and conference call. We are continuing our business consistent with our existing strategic plan."
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