Aerospace service and replacement parts company TAT Technologies Ltd. (Nasdaq:TATTF) will buy all publicly held shares in subsidiary Limco-Piedmont Inc. (Nasdaq: LIMC), valuing Limco-Piedmont shares at a 12% premium to the April 2 closing price. Following the transaction, Limco-Piedmont will be delisted.
TAT currently owns 61.8% of Limco's common stock. The transaction will be all-stock merger, in which Limco shareholders will receive one half of an ordinary share of TAT for each share of Limco common stock they own.
Limco-Piedmont went public less than two years ago, in July, 2007.
Following the merger, former Limco stockholders (excluding TAT) will own approximately 27.8% of the ordinary shares of TAT
Since TAT, with its 61.8% stake in Limco, has advised Limco's board that it intends to vote for approval of the deal, the transaction is essentially completed, and the companies anticipate that the closing of the merger will occur in the second or third quarter of 2009.
After the merger, Limco will operate as a wholly-owned subsidiary of TAT, maintaining its current management.
Limco-Piedmont Inc. provides maintenance, repair and overhaul, (MRO), services and parts supply services to the aerospace industry. TAT Technologies provides the aerospace industry with OEM products, MRO services, and parts.
Several weeks ago, TAT Technologies announced a $1 million share buyback plan, to purchase its own shares from investors. It also recently said that it will exercise its option to increase its stake in Israeli motion system technology company Bental Industries Ltd. from 52% to 70%. TAT bought its stake in January, 2008.
Shares in TAT Technologies fell 7.6% to $4.74 on Friday, giving it a market cap of $31.06 million. Shares in Limco-Piedmont fell 4.8% to $2.18, giving it a market cap of $28.78 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2009
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