Vodafone Group PLC (VOD, VOD.L) said it plans to acquire Cobra Automotive Technologies S.p.A via. a voluntary tender offer at 1.49 euros per share cash, valuing the entire fully diluted ordinary share capital of Cobra at 145 million euros, or 115 million pounds.
Headquartered in Italy, Cobra is a provider of security and telematics solutions to the automotive and insurance industries, whose reported net debt totaled 48 million euros, as at March 31, 2014.
Vodafone has inked an agreement with Cobra's main shareholders, who, together, own 73.96% of Cobra's share capital, on a fully diluted basis, to effect certain matters including agreeing to tender their shares into the Offer. The offer is likely to be launched in the coming weeks, subject to the relevant provisions of Italian law.
In addition, Vodafone has reached a deal with certain minority shareholders of Cobra's Telematics unit to purchase their 20% stake for 20 million euros, conditional on completion of the offer.
The Cobra acquisition is in line with Vodafone's strategy to expand its machine-to-machine capability beyond connectivity. Cobra's telematics products and expertise would enable Vodafone to offer a more comprehensive range of end-to-end services to automotive customers. The offer is conditional on obtaining appropriate anti-trust approvals and is expected to complete in the third quarter of 2014.
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