Electro Optic Systems to Sell Naval Satellite Communications Unit for AU$144 Million; Shares Up 10%

MT Newswires Live11-22 09:59

Electro Optic Systems (ASX:EOS) agreed to sell its naval satellite communications subsidiary, EM Solutions, to UK-based technology group Cohort for AU$144 million, subject to customary adjustments, according to a Thursday filing with the Australian bourse.

The transaction is expected to be completed within six months, once Cohort secures approval from the Foreign Investment Review Board, the filing said.

Completion of the transaction will automatically trigger the full repayment of the company's outstanding debt facility with Washington H. Soul Pattinson and Company, totaling AU$64.4 million, according to the filing.

Electro Optic Systems shares rose past 10% in midday trade Friday.

Price (AUD): $1.17, Change: $+0.11, Percent Change: +10.38%

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