ARM in

Sarla Buch
18 Jul, 2016
New York City

ARM Holdings agreed to be acquired by Japan-based SoftBank for about

[R]4:00 PM Frankfurt – ARM Holdings agreed to be acquired by Japan-based SoftBank for about £23.4 billion. Continental is said to close to acquiring the domestic rival Konrad Hornschuch for €400 million. Kion said revenues soared 7%.[/R]

In London trading, FTSE 100 index rose 32.21 or 0.5% to 6,701.45 and in Frankfurt the DAX index gained 30.40 or 0.3% to 10,097.41.

In Paris, CAC 40 index edged up 0.85 to 4,372.83.

ARM Holdings Plc surged 42.6% to 1,695 pence after the U.K.-based microprocessor chip maker agreed to be acquired by Japan-based communications services provider SoftBank Group Corp for about £23.4 billion in cash or $32 billion.

Under the terms, SBG agreed to acquire 1,412 million shares for £17 per share in cash or with a total acquisition price of about 3.3 trillion yen.

The acquisition is financed by debt facility provided by Mizuho Bank Ltd for up to 1 trillion yen and rest will be funded from SBG’s existing cash resources. As the company said it does not intend to raise equity finance for this purpose.

The ARM Holdings board, confirmed that they unanimously intend to recommend that shareholders vote to approve the acquisition.

The transaction is expected to close during the third-quarter of this year.

Continental AG rose 0.6% to €181.10 after the domestic media reports suggested that the Germany-based tire maker is close to acquiring the smaller domestic rival Konrad Hornschuch AG, owned by private equity firm Equistone Partners for about €400 million or $441 million.

Kion Group AG jumped 3.6% to €47.31 after the Germany-based forklift truck maker reported revenues in the second-quarter ending in June soared 7% from a year ago to €1.34 billion and operating profit surged 20.9% to €140.8 million.

Kion said orders in the quarter jumped 3.9% to approx 45,600 units and order intake in the quarter advance more than 8% to about €1.43 billion.

The company affirmed revenue forecast in the year in the range of €5.20 billion to €5.35 billion and operating profit between €510 million to €535 million and free cash flow in the range of €280 million to €320 million.

Opera Software ASA plunged 8.9% to 53.75 Norwegian kroner after the Chinese internet company fail to get regulatory approval in time for the acquisition at the price of 71 kroner per share or $1.2 billion.