SPOKANE VALLEY, WA -- KeyTronic today issued its latest "no thank you" to Cemtrex, a would-be suitor that has issued a series of public overtures but no formal offer.
On Oct. 23, Cemtrex made its third public statement of interest in acquiring Key Tronic, which is considerably larger in terms of revenue and market capitalization. In its latest bid, Cemtrex raised its offer to roughly $11 per share, up from its initial stock-swap bid that would have valued Key Tronic at $3.19 per share. The latest bid includes one $10 4% debenture due 2024 and one-third share of Cemtrex common stock, however, meaning Key Tronic shareholders would receive less near-term value for their interests in the company.
In its latest rebuttal, Key Tronic outlined familiar issues with Cemtrex's proposal, including 1. a lack of direct communication detailing the "purported" offer, and no formal exchange offer for common stock (which would require additional SEC filings).
"Despite Cemtrex's statements that this is an increase in value over its earlier purported offer, Key Tronic continues to have extremely serious concerns about the accuracy of its statements provided in its public disclosures regarding the purported offer and its motives, as well as the legitimacy of the purported offer.
"Key Tronic intends to focus on continuing to execute on our strategic plan. We believe that pursuing our growth opportunities and continuing to leverage our competitive strengths will be in the best long-term interests of our shareholders."