Telit confirms talks to offload automotive division
AIM-quoted machine-to-machine (M2M) communications provider Telit Communications confirmed it was in "very early stage" talks to sell its automotive division.
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Telit released a statement on Monday afternoon regarding press speculation regarding the possible sale of its automotive division.
"The board has for some time been actively considering the future of product lines which may not fit the group's long-term strategy," the AIM-listed company said.
"One of the product lines being considered is the group's automotive division. This process, led by Rothschild, is at a very early stage."
Private equity groups Berkshire Partners, Vector Capital, Apax, Advent and Battery Ventures were circling the division, the Financial Times reported, with the automative arm valued at between £100m and £150m.
The discussions came as whispers of a full group takeover were in abundance after the firm's previous chief executive, Oozi Cats, left in September after he was linked to a US fugitive named Uzi Katz which led to share prices nosediving as much as 60%.
Yosi Fait, interim chief executive officer, took the Telit helm after an independent review "found evidence that an indictment was issued against Oozi Cats in the US and that this fact was knowingly withheld from advisors".
Fait will carry out a "preliminary review" of the telecommunications group's activities and cost base.
As of 1525 BST, Telit shares had gained 14.58% to 180.75p.