Board of directors backs tender offer

Motorola has announced that its MI subsidiary will launch a tender offer to acquire a controlling interest in Vertex Standard, a provider of two-way radio technology.

The purchase price for 80 per cent of the outstanding shares on a fully diluted basis will be approximately ¥12.3bn ($108m).

On successful closure of the deal and subsequent restructuring, Motorola will own 80 per cent of Vertex Standard.

Tokogiken, a privately held Japanese company, controlled by Jun Hasegawa, current president and chief executive of Vertex Standard, will retain 20 per cent, forming a joint venture.

The board of directors of Vertex Standard today expressed their support of the tender offer.

"The joint venture will give Vertex Standard access to Motorola's global distribution channels, presenting considerable opportunities for Vertex Standard to drive growth," said Hasegawa.

"We also expect to reduce costs as we will benefit from Motorola's global scale and resources."

Shareholders of Vertex Standard who do not tender their shares will receive cash consideration as a result of the restructuring following successful completion of the tender offer.

The offer is subject to regulatory and other customary conditions and is expected to close in early January 2008.

Motorola must complete the tender offer within 60 working days of its commencement, as required by Japanese law.