Celestica shares rise on Flextronics-Solectron deal
Shares of CelesticaInc. got a lift Monday after a multibillion-dollar takeover deal in the electronics manufacturing sector was unveiled.
Flextronics International Ltd. of Singapore is buying Solectron of Milpitas, Calif. in a cash and stock deal worth over $30 billion US.
Holders of Solectron can get $3.89 US per share in cash or 0.345 of a Flextronics share for each share they hold. Between 50 and 70 per cent of theof total will be paid out in Flextronics shares.
Together, Flextronics and Solectron will have about 200,000 workers in 35 countries.
“We will be a larger, more competitive company and therefore better positioned to deliver supply chain solutions that fulfil our customers’ increasingly complex requirements,” said Mike McNamara, the CEO of Flextronics, in a release.
After the deal was announced, shares of Toronto-based electronics maker Celestica gained 26 cents, or more than three per cent, to reach $7.26 in morning trading on the TSX.
On the NYSE, Solectron shares rose more than 14 per cent to reach $3.85 US.