QUANTUM To Buy Global Thermoelectric Inc.
DOW JONES NEWSWIRES
IRVINE, Calif. -- Quantum Fuel Systems Technologies Worldwide Inc. (QTWW), seeking to expand its foothold in the energy-technology sector, agreed to acquire Canada's Global Thermoelectric Inc. (T.GLE) in a stock swap valued at $75 million.
Quantum said in a press release Wednesday that Global common shareholders will receive 0.835 to 1.020 shares of Quantum stock for each Global share. The ratio will be determined by dividing the 20-day, volume-weighted average Quantum stock price ending three days prior to a meeting of Global shareholders into $2.6284.
Shareholders at both companies must sign off on the plan. The deal, which is expected to close in the third quarter of calendar 2003, must also meet other customary conditions.
"We believe that combining Global with Quantum will make Quantum a stronger company with expanded markets, greater technical resources, diversification, cost efficiencies and a formidable engineering team," Quantum President and Chief Executive Alan P. Niedzwiecki said in the statement.
Quantum designs and manufactures integrated fuel systems to original equipment manufacturers for use in alternative-fuel vehicles and fuel-cell applications. Global Thermoelectric makes thermoelectric power generators for use in remote locations.
Global Thermoelectirc said separately Wednesday that the deal values the company at $2.51, or a 50% premium to Global's close Tuesday.
Global will nominate two directors to Quantum's board.
Quantum said Global common shareholders will be left with 52% to 57% of the outstanding pro forma Quantum common shares once the deal is completed. Additional details weren't immediately available.
General Motors Corp. (GM) holds a 19.9% stake in Quantum.
Quantum expects the deal will boost revenue and liquidity and reduce cash burn.
Adams, Harkness and Hill Inc. served as Quantum's financial adviser.
Shares of Quantum closed Tuesday at $2.32, off 15 cents, or 6.1%, in Nasdaq trading.
Company Web sites: gtww.com; globalte.com |
