Coleman Cable made an unsolicited offer to buy Technology Research Corp.
CLEARWATER — Coleman Cable Inc. (symbol: CCIX) submitted an unsolicited indication of interest to Technology Research Corp. (symbol: TRCI), offering to pay $5.50 per share to acquire TRC in an all-cash transaction.
Such a deal would put TRC's value at roughly $36.4 million, records show.
TRC's board of directors is currently considering Coleman's offer, and in the meantime has offered short-term protection to shareholders by initiating a rights plan.
Under the plan's terms, if one individual or unified group of investors acquires 15% or more of TRC's stock, other shareholders have the immediate option to buy $30.00 worth of TRC stock for $15.00. The plan expires in two years, on Jan. 18, 2013.
Investors have responded to the news by buying shares of TRC stock. After closing on Friday at a per-share value of $3.90, shares are currently trading above the $5.00 mark.
Headquartered in Clearwater, Technology Research Corp. develops power management systems. The firm earned $2.84 million in profits on $34.8 million in revenues in its 2010 fiscal year, ended Mar. 31. If the company were acquired, the $0.08 in annual per-share dividends it currently pays to its shareholders would contribute roughly $530,000 in additional profitability to its bottom line.