Pace says discussions with Google are currently at a preliminary stage and there is no certainty as to whether any agreement regarding any transaction will be reached.
The company confirmed that the potential acquisition of Google’s Motorola Home business would be classified as a “reverse takeover” under the UK Listing Rules given its size relative to Pace. As a result, the ordinary shares of Pace have been suspended from trading as of this afternoon. The shares will re-commence trading either on sufficient information on any potential transaction being provided publicly to shareholders, whether in the form of a prospectus or otherwise, or on the release of an announcement confirming that Pace is no longer in discussions with Google regarding the potential acquisition of the Motorola Home business.
Pace confirmed that it continues to deliver on its strategic plan as outlined in November 2011. In its Q3 Interim Management Statement released on 14 November, the Company outlined that it is now expecting FY2012 revenues to be flat on FY2011 (2 per cent underlying growth before the impact of HDD supply disruption) with increased operating margins of greater than 7 per cent.