Updated: itX shareholders approve Avnet proposal

Updated: itX shareholders approve Avnet proposal

Avnet set to take over from January 4

itX Group (ASX:ITX) shareholders have given their approval of the proposed Scheme of Arrangement for Avnet Technology Solutions to act on its acquisition proposal.

The ASX-listed distributor will now seek Federal Court orders to approve the Scheme at a hearing scheduled for December 2.

If the court approves the Scheme, itX’s shares will be suspended from trading on December 3. The transfer of itX shares to Avnet is expected to take place on January 4.

It was previously stated that itX shareholders are set to receive $1.55 in cash for each share they hold on the Scheme record date.

Avnet revealed its intentions to acquire itX for $77.5 million in August. At the time, Avnet country manager, Gavin Lawless, hoped to have the process finalised by January.

itX managing director, Laurie Sellers, said the acquisition won't be implemented until January 4.

"Avnet wanted to effectively takeover on the first working day of the new quarter," Sellers said. "We're still in control of the business until January."

In the meantime, Sellers said it had planned a couple of meetings to take place during December with some senior Avnet personnel to discuss integration plans.

itX recently reported a solid 2010 financial year, despite some challenges faced in its hardware business, particularly with Oracle’s acquisition of Sun Microsystems.

Some of the 2010 highlights from its 2010 report included reporting cash balances of more than $11 million at June 30, 2010, after payments of $6.4 million for business acquisition and dividends. Revenue hit $159.9 million, a year on year increase of 9.1 per cent. Net profit after tax was $7.58m, up 3.8 per cent from the last financial year.

At the time of publication itX was trading at $1.53.

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Tags itXavnet technology solutionsmergers & acquistions


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