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Mitsubishi Electric to buy DeLclima for $768 million

Staff writer ▼ | August 27, 2015
Mitsubishi Electric has agreed to buy Italian air conditioning company DeLclima for 664 million euros ($768 million) in cash.
Acquisition   4.44 per DeLclima share
Mitsubishi Electric Corporation has entered into an agreement to purchase from De’Longhi Industrial S.A. shares representing approximately 74.97% of the share capital of DeLclima S.p.A., an Italian company engaged in the commercial air conditioning products business, the company said.

After the closing of this transaction, a mandatory tender offer will be launched by Mitsubishi Electric in order to acquire the remaining shares representing approximately 25.03% of the share capital of DeLclima, in compliance with Italian financial law and CONSOB regulations.

The total expected purchase price for 100% of DeLclima’s shares is approximately €664 million (calculated based on a per-share price of €4.44.

The completion of the transaction in relation to the acquisition by Mitsubishi Electric of 74.97% of DeLclima’s share capital requires clearance from antitrust authorities and the completion of the sale of DL Radiators S.r.l., an indirect subsidiary of DeLclima).

DL Radiators will be sold to a company affiliated with De’Longhi Industrial prior to the closing of the Transaction.

In addition, under the agreement the €4.44 per-share price will be increased by an additional amount to be calculated on a daily basis, starting from 30 June, 2015 up to the closing date.

The estimated per-share amount of such price increase is approximately €0.07, assuming that the closing of the Transaction will take place at the end of November 2015.