Asia Biz News - Asian Business News and Tenders
Nuri Telecom Acquires Apivio Systems
April 16, 2017
South Korea's Nuri Telecom Company Limited is acquiring British-Columbia-based Apivio Systems, a communications and telecom technology supplier.
Under the terms of the agreement Nuri has agreed to amend its offer to provide for an increase in the offer price to Apivio shareholders to $0.45 for each Share. The Amended Offer, valuing Apivio at approximately $24.0 million, has unanimous support of the Boards of Directors of both companies.
"We are pleased to have the support of the Apivio Board of Directors," said Song Man Cho, Nuri's Chairman and Chief Executive Officer. "We believe this transaction delivers excellent value to Apivio shareholders. Together, we're bringing this full, fair and final offer to Apivio shareholders and we encourage everyone to tender their shares."
"Since Nuri made its initial offer, our Board has remained steadfast in our commitment to maximize value for all shareholders," said Rob Bakshi, Apivio's President and Chief Executive Officer. "This agreement fulfills that commitment, providing our shareholders with a fair price for their shares, we can now unreservedly recommend shareholders tender their shares to Nuri's improved offer."
A notice of variation for the Amended Offer is expected to be mailed to registered security holders of Apivio by April 21, 2017 and will be filed on Apivio's SEDAR profile. Apivio shareholders are urged to carefully review this document in its entirety.
The Amended Offer is subject to certain conditions, including the acquisition by Nuri of at least 51% of the outstanding Shares (calculated on a fully-diluted basis) being validly tendered under the Amended Offer and not withdrawn. This minimum tender condition has been lowered previously from 66⅔%.
The Apivio Board will issue a notice of change to its directors' circular that will contain its favourable recommendation to Apivio shareholders. Apivio expects to issue and mail the notice of change with Nuri's notice of variation in connection with the Amended Offer.
The Agreement contains, among other things, provisions for non-solicitation of competing offers, provided that Apivio has the right to consider superior proposals from other parties.
PI Financial Corp. are financial advisors to Nuri. Norton Rose Fulbright Canada LLP are Nuri's legal advisors. Haywood Securities Inc. is Apivio's financial advisor. Apivio's legal advisors are Blake, Cassels & Graydon LLP.
Nuri is a provider of next generation communication technology for the Internet of Things ("IoT") and the Smart Grid industry. Nuri is a global leader in providing end-to-end advanced metering infrastructure solutions that save consumers money and help utilities to run a network infrastructure that's proven, reliable, future-proof and fully standardized. Nuri's core product offering is a communication solution for smart meters, AiMiR, which provides automatic meter readings of electricity, water, gas and other measurements and delivers gathered data through a variety of networks in real time. AiMiR helps consumers and utility companies manage their resource consumption by providing real time information, accommodating their resource distribution to optimum levels for both short term and long term infrastructure needs.
To date, Nuri has deployed its communication systems to over two million households and businesses in 19 countries worldwide, and that number continues to grow each day through large-scale deployments in commercial, industrial, and residential markets. With a growing list of global customers, Nuri is expanding its customer base throughout Asia, Europe and Africa. Recently, Nuri has won US$79.0 million Soria projects in Norway and US$12.0 million ECG projects in Ghana.
Apivio Systems Inc. is a Canadian technology company principally engaged in the design, development, marketing, and sale of communications equipment and software. It has a wholly-owned Korean subsidiary with an established track record of supplying VoIP telephone equipment and other products to major Korean and international telecommunications carriers.
Copyright: North America Procurement Council Inc., PBC.