Garmin Makes Huge Offer for Raymarine

In an announcement made on the London Stock Exchange today, Garmin announced it is offering 15 pence (19.74 cents U.S.) per share for all the shares of Raymarine Plc. Raymarine lately has been discussing the various offers made for its shares but had not specifically mentioned Garmin since talks broke down between the two firms last [...]

28th April 2010.
By Tom Tripp

Garmin-Proposed Helm for the Kadey-Krogen 55' Expedition

Garmin-Proposed Helm for the Kadey-Krogen 55' Expedition

In an announcement made on the London Stock Exchange today, Garmin announced it is offering 15 pence (19.74 cents U.S.) per share for all the shares of Raymarine Plc. Raymarine lately has been discussing the various offers made for its shares but had not specifically mentioned Garmin since talks broke down between the two firms last December.

In its filing, Garmin says Raymarine initially approached it about making an offer to purchase the company back in June of 2009 and that subsequent to a recently announced offer of 3.6 pence per share of Raymarine, the company decided to make an offer.

In its announcement, Garmin notes that its offer is:

- a 436 per cent. premium to the average share price of 2.8 pence per Raymarine Share in the three-month period ending on the day prior to the announcement of a possible offer for Raymarine on 11 March 2010;

- a 366 per cent. premium to the share price of 3.22 pence per Raymarine Share on the day prior to the announcement of a possible offer for Raymarine on 11 March 2010;

- a 275 per cent. premium to the possible amount of approximately 4 pence per Raymarine Share that would be available for return to Raymarine Shareholders under the non-offer proposal referred to in Raymarine’s announcement dated 21 April 2010; and

- a 152 per cent. premium to the share price of 5.95 pence per Raymarine Share as at the close of business on 27 April 2010, the closing price on the day prior to the date of this announcement.

Total consideration of approximately £12.5 million would be payable by Garmin to Raymarine Shareholders, assuming that no Raymarine Shares are issued between the date of this Announcement and the closing date of the Offer.

Garmin says it expects the offer will receive the necessary regulatory approvals. As of mid-afternoon today there has been no official response from Raymarine.

I believe this announcement is the latest evidence of the aggressive posture Garmin has taken in recent years toward the marine electronics market. The company has pioneered a great deal of innovation in non-marine markets and has become the de-facto market leader in general aviation, as well as dominating the handheld and automotive aftermarket GPS segments. Garmin made an innovative proposal for outfitting the new Kadey-Krogen 55′ Expedition when we asked the leading marine electronics companies to do so.

Copyright © 2010 by OceanLines LLC. All rights reserved.


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Tom Tripp

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Tom is the publisher of www.OceanLines.biz, a website about passagemaking boats and information. He is also a contributor to Chesapeake Bay Magazine who has been at sea aboard everything from a 17-foot homemade wooden fishing boat to a 1,000-foot-long, 96,000-ton, nuclear-powered aircraft carrier.

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