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09 Jun 16. Drone USA, Inc. (OTC Markets:TWDLD) (“Drone USA” or the “Company”), a developer and manufacturer of low altitude Unmanned Aerial Vehicles (UAV) and related technologies, announced today that the Company has submitted a letter of intent to acquire a west coast distributor (“the seller”) of spare and replacement equipment and machine parts with major customers that include the United States Department of Defense (DoD) and commercial customers worldwide.
Pursuant to the agreement, Drone USA will acquire the entire operating business of the seller which will be accretive to Drone USA’s earnings. For the last twelve months ended May 31, 2016, the seller reported revenues of approximately $22.3m, and earnings before interest, taxes, depreciation and amortization of approximately $1.93m. Drone USA for consideration of the acquisition intends to use a combination of cash and stock.
Michael Bannon, Chief Executive Officer of Drone USA, commented, “We are excited to complete this transaction, as it will strengthen our DoD distribution network and be accretive to earnings. At a time when the fundraising landscape has a high degree of uncertainty, we have been afforded an opportunity, as a public company, to utilize stock as payment for this transaction. Currently, we are in discussions with other potential acquisition candidates that share Drone USA’s vision and recognize the potential value of our business. We believe that our long term objectives of growing the Company through strategic acquisitions will serve to accelerate the build out of the Company and provide us with the momentum needed for organic growth as well as increase value for our shareholders.” Details pertaining to the transaction have not yet been disclosed. (Source: BUSINESS WIRE)
09 Jun 16. Airbus says to sell remaining Dassault stake. Airbus Group said on Thursday it was selling its remaining stake in Dassault Aviation, ending a longstanding arrangement to warehouse shares in the maker of combat and business jets on behalf of the French government. Europe’s largest aerospace group said after European markets closed that it was selling 0.83m shares or 9.05 percent of Dassault through an accelerated equity placement. At the same time, Dassault Aviation plans to buy 502,282 of its own shares, or 5.5 percent, at the placement price or 980 euros a share, whichever is lower, Airbus said in a statement. Dassault Aviation shares closed earlier at 970 euros. Finally, Airbus Group plans to issue zero-coupon, 5-year bonds for a nominal amount of around 1bn euros and these will be exchangeable into Dassault Aviation shares at a premium of 35-40 percent compared to the equity placement price.
“With this transaction, Airbus Group plans to fully dispose of its 23.6 percent stake in Dassault Aviation while retaining upside exposure on the shares underlying the bonds,” Airbus Group said in a statement. If the bonds are exchanged in full, Airbus Group will no longer hold any shares in Dassault Aviation, the company said.
As an interim step, it will hold around 9.0 percent of Dassault Aviation and 11.7 percent of the voting rights after completion of the equity placement and the buyback. BofA Merrill Lynch, BNP Paribas, Deutsche Bank, Goldman Sachs and J.P. Morgan are joint bookrunners on both the equity placement and the bond issue, Airbus said. BofA Merrill Lynch said early indications suggested the share and bond offers would both be over-subscribed and issued price guidance of 920-950 euros a share for the equity deal, representing a 2.1-5.2 percent discount to the closing price. Airbus Group inherited the Dassault stake from former state-owned Aerospatiale when it was founded, along with a Paris headquarters