By Cristina Roca
Shares in First Sensor AG soared Monday after TE Connectivity said that it will launch a takeover offer for all outstanding shares in the sensor manufacturer, a transaction valued at about 307 million euros ($342.8 million).
First Sensor and TE on Monday signed a business combination agreement. Following the agreement, TE will make a voluntary public tender offer of EUR28.25 per First Sensor share, the German company said in a press release.
At 0748 GMT, shares in First Sensor traded 11% higher at EUR28.05.
"The transaction with TE allows First Sensor with its market-leading product portfolio to become part of a global technology and manufacturing leader for connectivity and sensor solutions and provides the scale, customer base and existing sensor expertise to create a more comprehensive offering to a deeper and broader customer base," First Sensor said.
The tender offer won't have a minimum acceptance threshold, First Sensor said, noting that shareholders owning about 67% of all outstanding shares in the company have already agreed to accept TE's offer.
The deal should close by mid 2020 at the latest, the First Sensor said.
First Sensor Chief Financial Officer Mathias Gollwitzer said he will resign from his post after the takeover offer is completed.
Write to Cristina Roca at firstname.lastname@example.org; @_cristinaroca