Molex Inc. said most of its shareholders have approved its pending acquisition by Koch Industries Inc. This means the $7.2 billion deal could be concluded on schedule once the companies receive regulatory consent in China, the European Union, Israel, Japan, Mexico and in the United States.
In a press statement Molex said holders of its two classes of outstanding shares – Common Stock and Class B Common Stock – have given their approval for the deal. More than 85 percent of the common stock holder agreed to move the transaction ahead while 99 percent of Class B common stock shareholders gave their approval.
“Molex stockholders also voted to (i) approve, on an advisory non-binding basis, the compensation that may be paid or become payable to the named executive officers of Molex in connection with the merger, (ii) elect four Class II directors nominated by Molex's Board of Directors to serve until the effective time of the merger, or, if the merger is not completed, for a three-year term, (iii) ratify the selection of Ernst & Young LLP as Molex's independent auditor for fiscal 2014, and (iv) approve the material terms of performance goals under the Molex Incorporated Annual Incentive Plan for purposes of Section 162(m) of the Internal Revenue Code,” the company said in the statement.
Koch Industries is paying $38.50 per share and a total of approximately $7.2 billion to take the 75-years old company private. The company had revenue of $3.6 billion in the fiscal year ended June 30 and operates manufacturing facilities in 17 countries.