Interesting news. The SCG group is part of the Semiconductor Sector. MOT has been interested in concentrating on actual CPUs, DSPs, etc. so getting rid of this Group would be seen as somewhat positive.
TFG ACQUISITION CORP. ANNOUNCES BID OF 1.6 BILLION DOLLARS
RELATED SYMBOLS: (MOT)
For Motorola's SCG Unit
TEMPE, Ariz., May 10 /PRNewswire/ -- TFG Acquisition Corp., an Arizona
Corporation, has announced that it has made and unsolicited offer of
$1.6 billion for Motorola's Semiconductor Components Group (SCG). The
purchase, originally proposed on March 30, 1999, is contingent upon due
diligence, finalization of purchase terms and approval by Motorola.
TFGAC is comprised of current and former senior executives of the
Motorola Semiconductor Products Group, who understand the opportunity
available and want to assume responsibility for a familiar division
with positive potential. The group's extensive experience, competence
and loyalty, that have already been demonstrated to Motorola in the
past, will ensure that the purchase will be entirely transparent to
existing and potential customers, employees and other stakeholders.
TFGAC understands the commitment and investment Motorola has given to
and made in its employees, and believes their Group is best suited to
guarantee that level of care going forward. The fully financed $1.6
billion bid demonstrates TFGAC's long held belief in the value that
Motorola has created, and specifically, in the strategic position
attained by SCG division.
Harjit Bhalla, TFGAC's acting CEO and formerly Vice-President and
Director of Market Research for Motorola stated that, "the opportunity
to return to Motorola is certainly an exciting opportunity and we are
truly excited about returning SCG to even greater profitability."
Gary Thomas, TFGAC's acting CFO and formerly Motorola's Controller of
the Power Products Division of the Discrete Group and former Controller
of the Analog IC Division also stated that, "the SCG unit is certainly
a gem in the Motorola portfolio and we believe that leveraging the
current employee base and operating plants will provide a strong
operational and financial base upon which to build a premier
organization to serve existing and new customers with the basic
products of today and new products for the future."
Mike Harris, President of Harris Technical Sales and Chairman of
Eclipse Technologies of Singapore added, "We believe our offer for the
SCG division is genuinely superior to the deals currently being
considered by the company. TFGAC has refined its original offer to
impress the Board of Directors."
Letters of intent for the debt and equity have been delivered to TFGAC
by equity and debt partners from a leading international bank and a top
tier equity investment firm.
TFGAC has requested that the Motorola Board of Directors consider their
bid immediately along with any other bids for the SCG division. TFGAC
has also stated that they would not consider any material layoffs, and
would keep all operating plants open under the new company name.
SOURCE TFG Acquisition Corp. |
