Adtran to acquire German rival Adva for over $930 mln, shares drop

Adtran Holdings

30/08/2021 18:27

** Shares of U.S. communications equipment provider Adtran
Inc  ADTN.O  down ~15% at $20.97
    ** Co to buy German rival Adva Optical  ADAG.DE  for 789 mln
euros ($930.70 mln)
    ** ADTN shares set for biggest one-day pct. fall since
October 2019
    ** Each ADAG share will be exchanged for 0.8244 share of the
new co, which will be renamed Adtran Holdings Inc, valuing ADAG
at 17.17 euros per share - ADTN  urn:newsml:reuters.com:*:nASN001LO2
    ** After the deal closes, which is expected to be in Q2 or
Q3 of 2022, ADTN will own ~54% equity of the combined co
    ** ADTN shares up ~39% this year, compared with a 19.6% rise
in the S&P 600 Communications Equipment index  .SPSMCCOMM 


($1 = 0.8477 euros)

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))