Highway Holdings Signs Non-Binding Letter Of Intent To Acquire Majority Of Synova Metall- Und Kunstofftechnik GmbH; Under The LOI, Highway Holdings Will Acquire A 51% Interest In Synova
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Highway Holdings Limited (NASDAQ:HIHO) has signed a non-binding letter of intent to acquire a 51% interest in Synova Metall- und Kunststofftechnik GmbH, a German OEM for electrotechnical and electromechanical components. The deal includes an option to acquire the remaining 49% under certain conditions, with payment in cash and Highway Holdings common shares. Due diligence is underway with the transaction expected to complete in Q1 2024, subject to customary conditions. The acquisition is seen as a strategic fit, offering synergies and cost savings.
December 11, 2023 | 9:02 pm
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Highway Holdings Limited is set to acquire a majority stake in Synova, which could lead to operational synergies and cost savings. The acquisition aligns with the company's strategic goals and may enhance its market position.
The acquisition of a majority stake in Synova is likely to be viewed positively by investors as it could result in increased market share, operational efficiencies, and cost savings. The strategic fit and potential for future acquisition of the remaining stake may also be seen as a growth opportunity. However, the impact is tempered by the non-binding nature of the LOI and the fact that the deal is subject to due diligence and other customary conditions.
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