8-KOther EventsExhibits & Filings

TE Connectivity plc 8-K Report, Corporate Update (Oct 24, 2007)

Filed October 24, 2007For Securities:TEL

Summary

TE Connectivity plc (formerly Tyco Electronics Ltd.) announced on October 19, 2007, that it has entered into a definitive agreement to divest its Power Systems business to The Gores Group LLC for a cash consideration of $100 million. This sale is subject to customary closing conditions and a final working capital adjustment, with an expected closing by the end of calendar 2007 or early 2008. This strategic decision aligns with the company's earlier announced intent to sell this segment. The Power Systems business has already been classified as a discontinued operation since the third fiscal quarter of 2007, with its financial results reported accordingly. Investors should note this divestiture as a move to streamline the company's portfolio and focus on core operations.

Key Highlights

  • 1Tyco Electronics Ltd. (now TE Connectivity plc) entered into a definitive agreement to sell its Power Systems business.
  • 2The buyer is The Gores Group LLC.
  • 3The sale price is $100 million in cash, subject to a working capital adjustment.
  • 4The transaction is expected to close by the end of calendar 2007 or early 2008.
  • 5The Power Systems business has been classified as a discontinued operation since Q3 2007.
  • 6This divestiture is part of the company's previously announced intention to sell the segment.

Frequently Asked Questions

The main event is the announcement that Tyco Electronics Ltd. has entered into a definitive agreement to sell its Power Systems business to The Gores Group LLC for $100 million in cash.

The transaction is expected to close by the end of calendar 2007 or early in 2008, subject to customary closing conditions.

In anticipation of the sale, the Power Systems business was classified as a discontinued operation starting in the third fiscal quarter of 2007, and its results have been reported accordingly.

No, the company had announced its intent to sell the Power Systems business earlier in the year, so this divestiture is in line with that previously stated strategic plan.