One of Canada’s larger space companies is reportedly up for sale. The report by Reuters says COM DEV approached several companies about a possible sale. On the news COM DEV’s stock shot up and trading was halted for about three hours.
The companies COM DEV reportedly approached include Comtech Telecommunications Corp, Honeywell International Inc, L-3 Communications Holdings Inc and Thales SA.
COM DEV issued the following statement on the report:
“COM DEV International Ltd. (TSX:CDV), a leading manufacturer of space hardware subsystems, has been made aware of press speculation regarding a possible acquisition transaction involving the Company. In response to that press speculation, COM DEV acknowledges that, in connection with a review of its strategic alternatives, it has been involved in confidential discussions with third parties with respect to potential strategic transactions involving the Company, with the assistance of its financial advisor Canaccord Genuity. While such discussions are ongoing, no assurance can be given that any transaction will be announced or completed. COM DEV does not intend to make further comment unless or until there is a transaction to announce.”
COM DEV had started looking for strategic options earlier this year.
If a sale is concluded it would need to pass the customary regulatory process. Depending on how the next government perceived a potential sale, any sale may or may not be approved. A sale concerning one of Canada’s leading space companies would surely be scrutinized.
It’s important to remember that it wasn’t that long ago, 2008, that the government rejected the sale of MDA to the foreign company ATK.