Tomahawk, WI 9/10/2013 (BasicsMedia) – The global electronic components company, Molex Inc. (NASDAQ:MOLX) announced that it reached out a definitive agreement with Koch Industries. It is presently being investigated by many law firms on behalf of the investors if this acquisition deal would prove to be best in the interests of the shareholders of the company and if the Board of Directors of Molex followed fair practices in evaluating this acquisition deal.

Acquisition by Koch Industries

The largest and most successful private companies of the world, Koch Industries Inc. would now acquire all the outstanding shares of Molex under the terms of this definitive agreement. The class A common stock and class B common stock of the company would be acquired for $38.50 per share in cash, for an approximate aggregate value of $7.2 billion. This purchase price represents a premium of 42% over the closing price of the publicly traded stock of Molex as on September 6, 2013. To be specific, the purchase price represents a premium of 31% to the Common Stock and a premium of 56% to the class A common stock of the company.

The Board of Directors of the two companies unanimously approved this acquisition deal. Further, certain executive officers on board of Molex and few of the Krehbiel Family member, who presently own the aggregate voting stock of the company representing around 94% of the Class B Common Stock and 32% of the Common Stock also entered into voting agreements with Koch. Under this agreement, the members would now vote their stock in support of the acquisition deal.

Molex to be a standalone subsidiary

Once the acquisition transaction is closed, Molex would become the standalone subsidiary of Koch Industries and would further continue to operate under the leadership of the current management team without any changes. The company with its 75 years long history of industry leadership in product innovation would also continue to retain its company name and its headquarters in Lisle, Illinois.

The Vice Chairman and Chief Executive Officer of Molex, Martin Slark commented that this acquisition deal would present an extensive opportunity to the customers and employees to build up on highly innovative past history of the company. He further quoted that the company would continue with its track record of investment and growth in innovation, people and technology.

Investigation lawsuits

Rigrodsky & Long P.A announced that the firm would be investigating this acquisition deal on potential claims against the board of directors of Molex to assess if they had possibly breached their fiduciary duties and had violated the law related to this transaction. The investigation claim primarily revolves around the question whether the board played its role effectively in marketing the company to assure the best possible value to its shareholders.

However, the deal proves to present growing confidence on the economy as the two leading players in the electronic components market move to work together to innovate in new segments of business.

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