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Filtronic acquires LK-Products
August 07, 1998
The UK-based electronics design and manufacturing company Filtronic plc has signed an agreement with Nokia to acquire the entire issued share capital of LK-Products, based in Kempele, Finland. LK-Products, established in 1978, designs and manufactures helical and ceramic filters and antennas for mobile telephones and access products for cellular base stations. The company is a major component supplier to Nokia and approximately 70 per cent of its sales were to Nokia in 1997.
The consideration for the acquisition is to be satisfied as to FIM 350 million in cash and by the issue of 4 million ordinary shares in Filtronic, which will give Nokia a 7.5 per cent shareholding in Filtronic's enlarged issued share capital. In view of the size of LK-Products in relation to Filtronic, the agreement is subject to the approval of Filtronic's shareholders in general meeting.
David Rhodes, Executive Chairman of Filtronic, said: "Filtronic is pleased to further its relationship with Nokia through the acquisition. We look forward to developing the business of LK-Products to satisfy Nokia's requirements in the future."
Filtronic plc (Filtronic Comtek plc until March 2, 1998) specializes in the design and manufacture of microwave devices for cellular telecommunications systems. The company employs more than 1000 people.
LK-Products Oy was established in 1978 in Finland under the name of Lauri Kuokkanen Oy, to manufacture and market electronical equipment and components, mainly duplex filters for mobile phones. In 1985, Nokia acquired the majority of the shares of the company, which in 1986 was registered under the name LK-Products. The company employs 850 people. In 1997 LK-Products reported a profit before tax of FIM 106 million on revenues of FIM 451 million and at the end of last year, it had audited net assets of FIM 86 million.
Nokia is a broad-scope communications company supplying mobile phones, mobile and fixed telecommunications networks, wireless data communications solutions, multimedia terminals and computer monitors. In 1997, net sales totaled FIM 52.6 billion ($9.8 billion). Headquartered in Finland, Nokia is listed on the NYSE (NOK.A), has sales in 130 countries and employs more than 41,000 people worldwide.
(1 GBP = app. 8.8 FIM)
Further information:
Filtronic plc
Tel. +44 171 638 4010
Professor David Rhodes, Executive Chairman
John Samuel, Deputy Executive Chairman
LK-Products
Tel. +358 8 880 6125
Veli Torvinen, Managing Director
Nokia Corporation
Tel. +358 9 1807 459
Lauri Kivinen, Senior Vice President
Corporate Communications
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