Desert Equity offers $4.25 for 3.74M White Electronic shares
Phoenix Business Journal - by Cathy Luebke
Desert Equity LP, a limited partnership controlled by White Electronic Designs Corp. Chairman Brian Kahn, is offering $4.25 per share for up to 3.74 million shares of the Phoenix company’s stock.
White shares (Nasdaq:WEDC) moved up 4 cents Tuesday to $4.22, which is 3 cents higher than Aug. 13 when Desert Equity announced plans for the cash offering. Trading volume hit 51,488 Tuesday, off from a three-month average of 133,847, according to Yahoo Finance.
Shares have ranged between $3 and $5.25 over the past year, which has seen a proxy fight, directional shift and new president and CEO at White.
Desert Equity would control 16.3 percent of the company’s outstanding stock if all 3.74 million shares are acquired. The deal also would boost Kahn’s beneficial ownership to 19.9 percent, according to a statement released by Desert Equity.
Kahn joined White’s board of directors in February and became chairman in June. The cash offer follows a settlement announced in February with certain shareholders settling a proxy fight over board membership. A settlement amendment inked this month gave Kahn and his affiliated entities the green light to acquire up to 19.9 percent of White’s common stock, according to filings with the U.S. Securities and Exchange Commission.
Earlier this month White posted net income of $224,000 for its third fiscal quarter compared with a net loss of $2 million last year. Revenue also moved up to $16.6 million from $14.8 million in Q3 last year.
The company also announced that former Cubic Corp. executive Gerald Dinkel would take over as president and CEO, filling a position that had been vacant for a year.
The bottom line improvement follows a year of struggles that saw White change its direction to focus primarily on military markets after exploring the option of selling the company.
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