Wireless Telecom Group (NYSEMKT:WTT) stock is getting a boost on Thursday after announcing the sale of the company.
Maury Microwave is the buyer with it agreeing to purchase Wireless Telecom Group for $2.13 per share. That represents a 34% premium to the closing price of WTT stock on Wednesday. It’s also a 50% premium to the stock’s value when the company announced plans for “strategic alternatives” in July 2022.
The Board of Directors at Wireless Telecom Group has given unanimous support to the sale. The board is also recommending that shareholders vote in favor of the deal. If that happens and regulators approve, the deal should close in the third quarter of 2023.
When the deal closes, CEO Tim Whelan will “step aside.” This will leave the current Wireless Telecom Group executive team managing the company. The firm will “continue to operate from its headquarters in New Jersey as a division of Maury.”
WTT Management Commentary
Whelan said the following about the sale to Maury Microwave:
“Once approved by shareholders, this transaction will achieve our goals of maximizing shareholder value by realizing the sum-of-the-parts value of our Company, and efficiently returning capital to our shareholders. We believe this outcome is in the best interest of our shareholders, the Company, our employees, and our customers.”
Heavy trading has some 440,000 shares of WTT stock on the move today. That’s already well above its daily average trading volume of about 16,000 shares. It also has WTT stock climbing 30.2% higher on Thursday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.