Tait Communications completes its takeover of Vital

Tait International, a private global provider of critical communications solutions, announced last week that it had reached 90% acceptance in its takeover offer for the ordinary shares and options in Vital (VTL), a public company that trades on New Zealand’s Stock Exchange (NZX).

Headquartered in Wellington, Vital operates a network operations centre (NOC) that monitors telecommunications networks across New Zealand. The company also owns and manages a nationwide digital radio network and a fibre network in Wellington City and parts of Auckland’s Central Business District. In addition, Vital owns data centres in Auckland and Wellington and two peering exchanges in New Zealand.

Originally floated on 27 May and formalised on 19 June, Tait’s offer was for 100% of the equity securities in Vital, which included its ordinary shares and unlisted employee share options. The company offered to acquire all of Vital’s shares for $0.45 per share and all of the unlisted employee share options for $0.13 per option; on 4 July, the Vital board recommended that shareholders and option holders should accept the offer.

The offer was conditional on Tait obtaining sufficient acceptances to hold or control at least 90% of the voting rights in Vital, and Tait has now reached that threshold. With 90% of the ordinary shares now acquired, Tait is permitted under the Takeovers Code to compulsorily acquire the remaining shares, which it intends to do. Tait then intends to delist Vital from the NZX.

“The takeover is a strategic move to expand our market positioning, product offerings and reach in New Zealand,” said Dr Yoram Benit, Tait Communications CEO and Managing Director. “Vital will contribute to Tait’s commitment to enhance New Zealand mission-critical and critical communication markets.”

Image credit: iStock.com/mohd izzuan