PROVIDENCE, R.I., June 25 -- Linear LLC, a wholly owned subsidiary of Nortek, Inc., announced today the results of its tender offer for the outstanding common shares of International Electronics, Inc., which expired at 12 midnight on June 22, 2007. All validly tendered shares have been accepted for payment in accordance with the terms of the tender offer. Linear also announced that a subsequent offering period for all remaining shares of IEI has been initiated.
As of the expiration date of the tender offer, approximately 1,519,480 shares have been validly tendered and not withdrawn in the tender offer, representing approximately 86% of the outstanding shares of IEI. Linear, through its wholly owned subsidiary Acquisition Sub 2007-2, Inc., has also initiated a subsequent offering period for all remaining untendered shares of IEI. This subsequent offering period will expire at midnight New York time on Thursday, July 12, 2007, unless further extended. The same US$6.65 per share price offered in the prior offering period will be paid during the subsequent offering period. The procedures for accepting the tender offer and tendering shares during the subsequent offering period are the same as those described for the offer in the Offer to Purchase by Acquisition Sub 2007-2, Inc. except that (i) the guaranteed delivery procedures may not be used during the subsequent offering period, and (ii) shares tendered during the subsequent offering period may not be withdrawn.
Linear expects to effect a merger of Acquisition Sub 2007-2, Inc. with and into IEI. In the merger, all shares of IEI, not acquired through the tender offer (other than those as to which holders properly exercise appraisal rights), will be cashed out at the same US$6.65 per share price, net to the seller, without interest, that is paid in the tender offer. As a result of the merger, IEI will become an indirect wholly owned subsidiary of Nortek. If Acquisition Sub 2007-2, Inc. becomes the owner of at least 90% of IEI's outstanding shares following this subsequent offering period and the delivery of shares tendered pursuant to guaranteed delivery procedures or otherwise, Linear will be able to effect the merger without the need for a meeting of IEI shareholders.
Linear intends to complete the merger as soon as practicable upon Acquisition Sub 2007-2, Inc. acquiring 90% or more of the outstanding shares of IEI. IEI shareholders who continue to hold their shares at the time of the merger and fulfill certain other requirements of Massachusetts law will have appraisal rights in connection with the merger.