Motorola intends to make a tender offer for all of the outstanding publicly held shares of its subsidiary Next Level Communications.
Motorola currently owns 74% of the outstanding common stock of Next Level and intends to offer to acquire the balance of Next Level’s common stock at $1.04 per share in cash.
This represents a 14.4% premium over the closing price on January 10, 2003 and a 28.6% premium over the average closing price for the last 90 trading days.
The aggregate consideration for the outstanding Next Level shares (including shares outstanding following exercise of in-the-money options) would be approximately $30 million.
Motorola acquired shares of Next Level through its acquisition of General Instrument Corporation, which became the basis for the formation of its Broadband Communications Sector in January 2000.
In December 2000, Motorola began providing capital to Next Level to support its operations and since that time has provided over $175 million in funding and $30 million in financial guarantees.