Cirtek sells American antenna business
Cirtek Holdings Philippines Corp. has moved to exit the antenna business of its subsidiary Quintel USA Inc., signing an agreement to sell the operational assets to John Mezzalingua Associates LLC (JMA).
The listed local electronics manufacturer said on Tuesday its board approved the transaction on June 15 and subsequently executed a definitive asset purchase agreement with the Delaware-based buyer.
“The sale covers Quintel’s base station antenna business, including certain customer contracts, accounts receivable, inventory, intellectual property rights (such as Quintel trademarks and technology), order backlog and related business records,” the company said.
Cirtek said the transaction would allow Quintel to streamline its corporate structure, improve liquidity and sharpen its operational focus.
The company added that the move would reduce its exposure to Quintel’s liabilities and operating losses while improving cash flow.
Under the agreement, the purchase price was negotiated based on the valuation of Quintel’s business, assets and liabilities.
The consideration is subject to deductions for assumed and other agreed liabilities, with the final amount to be determined after the completion of the liability resolution process.
An initial payment of $3.3 million will be made within 14 days after closing, while the remaining balance of about $2 million will be paid after the final determination of deductible liabilities, which is currently targeted within four months thereafter.
The total consideration amounts to roughly $5.3 million, or about P300 million.
