UPDATE 1-William Demant to buy Otix Global for $50 mln
* Otix expects to close deal between Nov and end of 2010
* Says William Demant offers $8.60/shr
* Offer at 113 pct premium
Sept 13 (Reuters) - Hearing aid maker Otix Global Inc OTIX.O said it agreed to be bought by Danish rival William Demant (WDH.CO) for about $50 million in cash.
William Demant will offer Otix shareholders $8.60 in cash, a 113 percent to the stock's Friday closing.
Separately, Otix said it will discontinue its operations in Germany as of Sept 14, citing regulatory obstacles that have impacted the feasibility of business in Germany.
The deal, which is expected to close between mid-November and the end of 2010, will need the approval of Otix shareholders, the company said.
According to the deal, if Otix terminates the agreement, it will be liable to pay William Demant a fee of $2 million. If William Demant ends the deal, it would be required to pay Otix a fee of $5 million, Otix said in a regulatory filing.
Otix shares, which have gained 11 percent in the last three months, more than doubled to trade at $8.39 Monday on Nasdaq. (Reporting by Anand Basu in Bangalore)
- Atheists face death in 13 countries, global discrimination: study
- Missouri executes man for killing good Samaritan motorist in 1994
- Focus turns to Thai military, anti-government protesters tell them to pick sides
- Google executives' planes saved millions in costs due to error - NASA
- Pro-sanctions U.S. lawmakers will introduce new Iran bill soon