(Reuters) - Shares of Technology Research Corp TRCI.O, a supplier of power monitors and control equipment, rose 40 percent to a near 5-year high, a day after Coleman Cable CCIX.O agreed to buy the company in a deal valued at about $51.5 million.
Technology Research (TRC), with a market value of about $34 million, said Coleman will buy all its outstanding shares for about $7.20 a share, about a 40 a premium to the stock’s close on Monday on Nasdaq.
Coleman Cable, which designs, makes and supplies electrical wire and cable products, owns about 4.9 percent of TRC’s outstanding shares.
The transaction will be funded with Coleman’s cash on hand and existing borrowing facilities.
Under the terms of the deal, Coleman will commence a tender offer for all of the outstanding shares of TRC on April 11.
Shares of TRC were up at $7.15 in heavy trade, making the stock the top gainer on Nasdaq. Coleman shares were flat at $8.53.
Reporting by Fareha Khan; Editing by Unnikrishnan Nair