In a document filed on the London Stock Exchange, Garmin, has offered 15 pence (nearly CAN $0.23) per share to acquire the entire share capital of Raymarine, headquartered in Portsmouth, Hampshire United Kingdom.
If the offer is approved and accepted, approximately Â£12.5 million would be payable by Garmin to Raymarine shareholders, so long as no Raymarine shares are issued between the date of the announcement and the closing date of the offer. “The offer is for the entire company through its holding company Raymarine plc,” says Ted Gartner, Garmin's Director of Corporate Communications in the US.
Garmin states in the offer that it believes that its business and Raymarine's are very complementary and that an amalgamation between the two would make strategic sense. “Garmin has long admired Raymarine and I am therefore pleased to be announcing what we believe is a compelling offer to acquire the company,” said Garmin CEO and Chairman, Min H. Kao, in the offer. “Raymarine's portfolio of products is highly complementary to our own. The combination will bring positive benefits to the marine electronics market place and we look forward to working with the Raymarine board in the implementation of the offer and thereafter with Raymarine's management and employees to make the combination a success.”
The offer further states that if it becomes complete, Raymarine's existing employment rights for all of its employees will be safeguarded.