Memory & Electronic Components Plc, or Memec, has disclosed the identity of its proposed buyer (CI No 1,631). The board voted on Friday to accept the UKP2.70-pence-per-share bid from Raab-Karcher (UK) Ltd, a subsidiary of German quoted company Veba AG, which specialises in energy and energy production and which Memec estimates to be four times the size of ICI. The UKP74m bid was favoured over a second alternative of UKP2.70 pence per share, plus up to a further UKP1.30 depending on the company’s results for the next three years. The deal, which is now subject to shareholder approval, will not involve job losses or restructuring, reiterated finance director Colin Stevens – two non-executive directors from Raab-Karcher will be appointed to the board, otherwise the move is purely an investment.
