Telit: Shares up as co divests automotive division

Titan Invo Technology

13/07/2018 09:49

** Internet of things company Telit's shares  TELT.L  up 5
pct at at 4-month high
    ** Co agrees to sell automotive division to TUS
International for $105 mln  urn:newsml:reuters.com:*:nRSM5213Ua
    ** Co to use proceeds to reduce its net debt; co has gone
from a net cash position in 2015 to more than $30 mln in debt at
the end of 2017, according to Reuters data, after a series of
corporate governance and accounting issues  urn:newsml:reuters.com:*:nL8N1L00WN
 urn:newsml:reuters.com:*:nL5N1KT1A4
    ** The deal is "very good value" for one of Telit’s
fastest-growing but least profitable operations, according to
house broker finnCap 
    ** Broker adds the cash received by Telit will eliminate
company's current debt and provide great security and working
capital for future growth
    ** Stock still down more than 50 pct from an all-time high
hit in mid-2017, before a series of profit warnings and its CEO
stepping down after he was found to have been a fugitive in a US
mortgage fraud case 



    

 ((Reuters Messaging:
Sangameswaran.S.thomsonreuters.com@reuters.net;
alasdair.pal.thomsonreuters.com@reuters.net))