Investor deep dive
CUI Global to transform into larger energy- and technology-services company
CUI Global Inc - A whole new venture
CUI Global (NASDAQ:CUI) has announced a proposed deal to combine with four other businesses, currently privately held, that provide industrial services to the energy industry and other sectors. The combined business, referred to in the release as Pro-Forma CUI, will be an entirely transformed entity, with more than 3x the revenues (estimated) of the existing CUI. Current CUI shareholders will own about 15% of the enlarged group, while shareholders of the four target businesses will own 85%.
The four target businesses provide services to industries including oil & gas, utilities, and wireless communications. The combined group will become a strong player in midstream/downstream energy infrastructure, and a platform for acquisitive growth going forward.
The chief executive officer (CEO) of the combined group will be Jim O'Neil, formerly of Quanta Services. Quanta is an infrastructure services company that enjoyed very strong acquisitive growth during O'Neil's tenure in top management roles.
The CUI news release includes an outline of the proposed deal structure:
We believe that the terms of the deal imply that the acquired companies are valuing CUI at a premium to its last closing share price of US$1.20.
Quick facts: CUI Global Inc
Market Cap: $21.22 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of CUI Global Inc named herein, including the promotion by the Company of CUI Global Inc in any Content on the Site, the Company receives from...FOR OUR FULL DISCLAIMER CLICK HERE
LEGAL NOTICE – IMPORTANT – PLEASE READ:
Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...FOR OUR FULL DISCLAIMER CLICK HERE