Santa Ana’s Powerwave Technologies Inc. could face a shareholder battle over its proposed $118 million buy of the commercial wireless business of Remec Inc.
SACC Partners LP, a Los Angeles-based investment fund, said Powerwave’s offer for the Del Mar-based unit is too little, setting the stage for a potential proxy fight over the acquisition.
The investment fund, an affiliate of Los Angeles broker-dealer B. Riley & Co., owns 7.5% of Remec, according to a recent filing with the Securities and Exchange Commission.
Powerwave makes radio frequency amplifiers for use in cellular telephone networks. Remec has several units that make voice and data transmission gear. The company’s commercial wireless unit has annual sales of $250 million.
The sale also included plants in China, Costa Rica and the Philippines. In 2003, Powerwave closed a Santa Ana plant and moved production to plants in Asia. The deal is expected to close by the summer.
Powerwave declined to comment on the filing. Neither Remec nor SACC Partners returned calls.
According to the filing, SACC said it has “concerns on whether the price is adequate” and that it intends to “contact the board and the purchaser in an attempt to learn why they feel the price is justified.”
“Depending on the results of these inquiries we may or may not determine to support the transactions and may determine to contact other shareholders,” the company said in the filing.
For more on this story, see the March 28 print edition of the Orange County Business Journal.
