Notable Mergers and Acquisitions of the Day 06/21: (SPRD) (TDG)/(GE) (MGI)
* Spreadtrum Communications, Inc. (Nasdaq: SPRD) announced that its Board of Directors has received a preliminary non-binding proposal letter, dated June 20, 2013, from Tsinghua Unigroup Ltd. ("Unigroup"), an operating subsidiary of Tsinghua Holdings Co. Ltd., a solely state-owned limited liability corporation funded by Tsinghua University in China, pursuant to which Unigroup proposes to acquire the Company (the "Transaction") for US$28.50 in cash per American Depositary Share (each American Depositary Share represents three ordinary shares of the Company).
The Company's Board of Directors is reviewing and evaluating Unigroup's proposal and cautions the Company's shareholders and others considering trading in its securities that the Board of Directors has just received the Unigroup proposal, and has not yet made any decisions with respect to the proposed Transaction, or the Company's response to the proposed Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
* TransDigm Group Incorporated (NYSE: TDG) has entered into a definitive agreement to acquire the assets of GE Aviation's Electromechanical Actuation Division, of General Electric (NYSE: GE), for approximately $150 million in cash. The acquisition, subject to regulatory approvals and other customary closing conditions, is expected to close around the end of the third quarter fiscal 2013.
The business, which will be conducted by TransDigm through a new entity, Whippany Actuation Systems, LLC (Whippany), located in Whippany, New Jersey, manufactures proprietary, highly engineered aerospace electromechanical motion control subsystems for civil and military applications. Product offerings include control electronics, motors, high power mechanical transmissions and actuators. The major commercial end-use platforms include the Airbus 380, Boeing 737NG and 777, and Embraer regional jets. The major military end-use platforms include Sikorsky SH-60 and S-92; Boeing CH-47, and Global Hawk. Whippany's revenues are estimated to be approximately $80 million with aftermarket accounting for 40% of the revenues and the commercial market comprising about 50% of the revenues.
* According to the NY Post, private-equity outfit GTCR is now on the list of potential suitors for MoneyGram. Sources said that GTCR is talking with management and probably won't make a bid for another several weeks.
MoneyGram is a large player in the money-transfer business, but not the largest. Western Union (NYSE: WU) controls about 15 percent of the global market, versus 5 percent for MoneyGram.
Sources said MoneyGram could draw $2.5 billion in a deal.
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