TE Connectivity to Buy Out CommScope JV Stake for $3.7B

Ticker: TEL · Form: 8-K · Filed: 2024-09-23T00:00:00.000Z

Sentiment: neutral

Topics: acquisition, joint-venture, divestiture

Related Tickers: COMM

TL;DR

TE Connectivity is buying out its partner in a JV for $3.7B, consolidating control.

AI Summary

TE Connectivity Ltd. announced on September 23, 2024, that it has entered into a definitive agreement to acquire the remaining 49% stake in its joint venture with CommScope Holding Company, Inc. for approximately $3.7 billion. This transaction is expected to close in the first half of fiscal year 2025, subject to customary closing conditions.

Why It Matters

This acquisition will allow TE Connectivity to fully integrate the joint venture's operations, potentially leading to enhanced synergies and a stronger market position in its connectivity solutions business.

Risk Assessment

Risk Level: medium — The acquisition involves a significant financial commitment and is subject to closing conditions, introducing integration and market risks.

Key Numbers

Key Players & Entities

FAQ

What is the total value of the joint venture being acquired?

The filing states TE Connectivity is acquiring the remaining 49% stake for approximately $3.7 billion. The total value of the JV would be higher, depending on the valuation of the 51% TE Connectivity already owns.

Who is TE Connectivity acquiring the stake from?

TE Connectivity is acquiring the remaining stake from CommScope Holding Company, Inc.

When is the transaction expected to close?

The transaction is expected to close in the first half of fiscal year 2025.

What is the nature of the transaction?

TE Connectivity is acquiring the remaining 49% stake in its joint venture with CommScope Holding Company, Inc.

Are there any conditions to closing the acquisition?

Yes, the transaction is subject to customary closing conditions.

Filing Stats: 838 words · 3 min read · ~3 pages · Grade level 13.1 · Accepted 2024-09-23 16:30:23

Filing Documents

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. In connection with TE Connectivity's previously announced change of place of incorporation from Switzerland to Ireland, which is expected to be completed on September 30, 2024, the last day of trading in TE Connectivity Ltd.'s common shares on the New York Stock Exchange ("NYSE") is expected to be on September 27, 2024. Trading in TE Connectivity plc's ordinary shares will begin on the NYSE under the existing ticker "TEL" when the market opens on September 30, 2024. The new CUSIP number for TE Connectivity plc's ordinary shares will be G87052109.

Forward-Looking Statements

Forward-Looking Statements This report contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainties and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this report include statements about the proposed change of its place of incorporation to Ireland, which are subject to risks, such as the risk that the change of place of incorporation may be delayed or might not be completed or, if completed, that the anticipated advantages might not materialize, as well as the risks that the price of TE Connectivity's stock could decline and its position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected, and other risks described in TE Connectivity's definitive proxy statement filed with the U.S. Securities and Exchange Commission ("SEC") on April 24, 2024. More detailed information about other risks and other factors that may affect TE Connectivity is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended September 29, 2023, as well as in our Quarterly Reports on For

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: September 23, 2024 TE CONNECTIVITY LTD. By: /s/ Harold G. Barksdale Name: Harold G. Barksdale Title: Vice President and Corporate Secretary

View on Read The Filing