Market Overview

Here's Why Multi-Fineline Electronix's Stock Is Up Nearly 40%

Share:

Shares of Multi-Fineline Electronix, Inc. (NASDAQ: MFLX) surged higher by nearly 40 percent on Friday after the company agreed to be acquired by China-based Suzhou Dongshan Precision Manufacturing Co., Ltd.

Multi-Fineline is a provider of high-quality, technologically advanced flexible printed circuits and assemblies.

As part of the agreement, Suzhou will pay Multi-Fineline shareholders $23.95 in cash for each share they own, representing a more than 40 percent premium to Thursday's closing price of $16.43.

Shares of Multi-Fineline were last seen trading at $22.67, representing a discount to the acquisition price. The acquisition remains subject to approval by stockholders of both companies and also requires approval by U.S. regulatory authorities.

"We are pleased to have reached this agreement, which we believe realizes significant, immediate cash value for our stockholders, offers new opportunities for our employees and supports the future needs of our customers," said Reza Meshgin, Chief Executive Officer of MFLEX. "Positioning MFLEX within a larger manufacturing conglomerate will also open new market opportunities for our flexible printed circuit and assembly solutions, further supporting the Company's long-term growth outlook. In turn, our Board has unanimously concluded that partnering with DSBJ is the best strategic path forward for MFLEX."

Posted-In: Multi-Fineline Electronic Reza Meshgin Suzhou Donghsan Precision ManufacturingM&A News Movers

 

Related Articles (MFLX)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com