Restoration of Trading to AIM and Business Update

RNS Number : 7820W

Global Invacom Group Limited

23 April 2019

 

Global Invacom Group Limited

(Global Invacom, the "Company" or the "Group")

Mutual termination of Takeover Discussions

Restoration of Trading to AIM and

Business Update

Singapore/London, 23 April 2019 - Global Invacom (SGX: QS9) (AIM: GINV), the global provider of satellite communications equipment, announced earlier today it has mutually agreed to terminate the proposed takeover of Tactilis Sdn. Bhd. ("Tactilis") (the "Transaction"), as announced on 24 October 2018. Such an acquisition would have constituted a reverse takeover under AIM Rules for Companies (the "AIM Rules") and accordingly the Company requested that its ordinary shares ("Shares") be suspended from trading on 18 October 2018. Now that the Transaction is no longer in contemplation, trading in the Company's shares on AIM will be restored with effect from 10.30 a.m. on 23 April 2019.

Termination of Discussions with Tactilis

Having undertaken further due diligence, the board of Global Invacom (the "Board") identified that whilst there were obvious benefits for the Transaction, there were difficulties in fulfilling all the conditions precedent in the SPA and therefore it is not in the best interest of Global Invacom shareholders to proceed at this time. The Company has therefore mutually agreed the termination of formal discussions with Tactilis and has requested that trading in the Company's shares on AIM recommence with effect from 10.30 a.m. on 23 April 2019.

Furthermore, there will be no penalty charges incurred for either side as a result of the termination of the Transaction.

Business Update

The Company has continued to make good progress in its underlying business, and on 1 March 2019 confirmed revenues for the year ended 31 December 2018 of US$122.3 million, with gross profit up by 4.1% versus the prior year to US$25.2 million.

Global Invacom's core satellite communications products include the antenna and electronics solutions for both direct to home ("DTH") satellite broadcasting and for the provision of Data over Satellite ("DOS"). The Group believes both solutions will be key components as the Company meets the global demand of digital connectivity.

In Q1 2019, the Company commenced shipment of its Eastern Arc Slimline Low Noise Block ("LNB"), following the launch of the Western Arc model in late-2018. The new Slimline products have been positively received by its key customer. The Company continues to build on its strong relationships with major US customers, including DISH and Hughes, who are some of the largest players in the provision of DTH and DOS respectively in North America.

In September 2018, the Company announced the acquisition of assets and the R&D function from Skyware Technologies, a designer and manufacturer of integrated transmitter/receivers for the provision of DOS. The acquisition further expanded the Company's product offering, enabling Global Invacom now to offer reception electronics and antennas for both the DOS market and its existing DTH markets.

The Company is pleased to report that it is also seeing improvements in the supply of electronic components following shortages highlighted in 2018, with pricing also starting to normalise.

The Group continues to focus on Research and Development, which the Board believes is essential in ensuring the Company continues to deliver future proof products capable of supporting customer requirements.

Mr. Tony Taylor, Executive Chairman of Global Invacom, commented:

"Whilst we are disappointed to be terminating discussions with Tactilis, the Board has taken a pragmatic decision which is ultimately in the best interests of our shareholders. 

"We have however, never lost sight in the inherent value that exists within our core business and believe the market for our products has never been stronger.  The integration of Skyware Technologies is continuing and our new slimline range of products continues to gather significant momentum with our key customer in USA."

For further information, please contact:

Global Invacom Group Limited	www.globalinvacom.com
Matthew Garner, Chief Financial Officer	Tel: [phone] Tel: [phone]
finnCap Ltd (Nominated Adviser and Joint Broker)	www.finncap.com
Christopher Raggett / Matthew Radley (Corporate Finance)	Tel: [phone]
Mirabaud Securities LLP (Joint Broker)	www.mirabaud.com
Peter Krens (Equity Capital Markets)	Tel: [phone]
WeR1 Consultants Pte Ltd (Singapore Investor Relations)	www.wer1.net
Lai Kwok Kin	Tel: [phone]
[e-mail]
Vigo Communications (UK Media & Investor Relations)	www.vigocomms.com
Jeremy Garcia / Fiona Henson / Charlie Neish	Tel: [phone]
[e-mail]

About Global Invacom Group Limited

Global Invacom is a fully integrated satellite equipment provider with six manufacturing plants across China, Israel, Malaysia, UK and the US.  Its customers include satellite broadcasters such as BSkyB of the UK and Dish Network of the USA and Data over Satellite providers including Hughes Network Systems, Viasat and Gilat Satellite Networks.

Global Invacom provides a full range of antennas, LNB receivers, transceivers, fibre distribution equipment, transmitters, switches and video distribution components and electronics manufacturing services in satellite communications as well as manufacturing services in military, medical, and consumer electronics industries.    Following the acquisition in 2015 of Global Skyware, a leading US‐based designer and supplier of satellite antennas products and services, the Company became the world's only full‐service outdoor unit supplier.

Global Invacom is listed on the Mainboard of the Singapore Exchange Securities Trading Limited and its shares are admitted to trading on the AIM Market of the London Stock Exchange.  

For more information, please refer to www.globalinvacom.com

 

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