CUI Global jumps on sale of electromechanical components unit

Orbital Infrastructure

01/10/2019 14:24

** Shares of CUI  CUI.O , which makes everything from
electrical sensors to natural gas metering devices, rise 17.2%
to $0.99 premarket on sale of electromechanical components
business in a deal valued at $15 mln
    ** Stock set for its best day in over 7 years and is among
the top Nasdaq-listed gainers premarket; CUI last traded above
$1 in early June 
    ** Deal comprises ~$4.7 mln in cash, $5 mln guaranteed
five-year earn-out and the retirement of a $5.3 mln promissory
note  urn:newsml:reuters.com:*:nPn3dF45sa
    ** Electromechanical business accounted for ~36% of CUI's
power and electromechanical segment (P&EM) revenue of $76.4 mln
in 2018
    ** Company also appoints Vice Chairman James O'Neil as CEO
in place of William Clough  urn:newsml:reuters.com:*:nPn7Cl4Dba
    ** "The sale of our electromechanical business puts us on a
path to divesting other, non-core business within the P&EM
segment" - Clough
    ** Shares down 31.3% YTD so far and have fallen in all but
three months

 (Reporting by Uday Sampath in Bengaluru)
 ((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223
8780; Twitter: @sampath_uday; Reuters Messaging:
UdaySampath.Kumar.thomsonreuters.com@reuters.net))