Shenzhen Kaizhong Withdraws Interest in Acquisition of Pacific Insight
VANCOUVER, Sept. 25, 2017 /PRNewswire/ - Pacific Insight Electronics Corp. (TSX: PIH) ("Pacific Insight" or the "Company") understands that Shenzhen Kaizhong Precision Technology Co. Ltd. ("Kaizhong") has issued a news release in China announcing that Kaizhong is no longer proceeding with its proposed acquisition of the Company.
Kaizhong first indicated its interest in Pacific Insight on September 6, 2017. Since that date, neither Kaizhong nor its advisors have contacted the Company or any of its advisors.
As previously announced, Methode Electronics, Inc. (NYSE: MEI) ("Methode") and the Company have agreed to a transaction pursuant to which Methode will acquire all of the issued and outstanding shares of the Company for cash consideration of $18.50 per share. Full details of the transaction with Methode are set out in the Company's information circular dated August 28, 2017, available under the Company's issuer profile at www.SEDAR.com and also on the Company's website.
A special meeting of Pacific Insight's security holders will be held on Tuesday, September 26, 2017 at 10 a.m. in Vancouver (the "Meeting"). Assuming that the Arrangement is approved at the Meeting, Pacific Insight is currently scheduled to return to court on September 27, 2017 to seek a final order to implement the Arrangement. In addition to securityholder and court approval, the completion of the Arrangement is subject to the satisfaction of certain other customary conditions.
About Pacific Insight
Pacific Insight (TSX: PIH) is a global solutions provider offering design, development, manufacturing and delivery of electronic products and full-service solutions to the automotive, commercial vehicle and specialty markets. Pacific Insight provides OEMs as well as Tier 1 and Tier 2 customers with a range of cost competitive products including LED lighting systems, electronic control modules and wire harnesses. For further information about Pacific Insight's business, please visit the company's website at www.pacificinsight.com
Caution Concerning Forward-Looking Statements
Certain disclosures in this release, including statements relating to management's consideration of the materials provided by Kaizhong regarding its proposal, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors. In particular, such risks include the satisfaction of the conditions precedent to the completion of the proposed transaction with Methode Electronics, Inc., the details of which are set out in the management information circular, and other risks and uncertainties disclosed under the heading "Risk Factors" in the Company's most recent annual MD&A which is available for download at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, Pacific Insight expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Pacific Insight Electronics Corp.