Rakon in discussions for buy-out of Centum Rakon India

Rakon Limited
T +64 9 573 5554, F +64 9 573 5559
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand
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27 February 2018

RAKON LIMITED (NZX: RAK)


Rakon in discussions for buy-out of Centum Rakon India
Rakon today announces that it is in advanced discussions with Centum Electronics Limited (“Centum”)
to buy out their 51% shareholding in the India based company Centum Rakon India Private Limited
(“CRI”) (“proposed transaction”). Rakon today has a 49% shareholding in CRI, the operation of which
is a core part of Rakon’s manufacturing strategy.
Both parties’ management are continuing to pursue the proposed transaction and have signed a non-
binding Terms Sheet in which Rakon would pay a consideration of USD5.5 million (staged over 18
months) for the 51% shareholding. Management are continuing to work on finalising a number of
matters including due diligence, approvals and the terms of final agreements.
The proposed transaction will be subject to the satisfactory conclusions of discussions, the negotiation
of transaction documents and various approvals, including the final approval of each parties’ Board of
Directors. No deadline has been set to complete the proposed transaction.

Brent Robinson
Chief Executive Officer & Managing Director

-ends-


Contact:
Simon Bosley (Chief Financial Officer)
021 206 0985

Media Enquiries:
Louise Howe (Media Liaison)
021 206 0985
www.rakon.com

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About Rakon
Rakon is a global high technology company and a world leader in its field. The company designs and
manufactures advanced frequency control and timing solutions for telecommunications, global
positioning and space and defence applications. Rakon products are found at the forefront of
communications where speed and reliability are paramount. The company’s products create
extremely accurate electric signals which are used to generate radio waves and synchronise time in
the most demanding communication applications. Rakon has five manufacturing plants including
two joint venture plants and has five research and development centres. Customer support centres
are located in ten offices worldwide.

Rakon is proud of its New Zealand heritage; it was founded in Auckland in 1967. It is a public
company listed on the New Zealand stock exchange, NZSX, ticker code RAK.
www.rakon.com

About Centum
Centum was founded in 1994 in Bangalore, India. Since then, Centum has rapidly grown into a
diversified electronics company with operations in North America, EMEA and Asia. The company offers
a broad range of products and services across different industry segments. It has continuously
invested in strengthening its design & product development capabilities while developing deep
domain knowledge in the segments it operates in. Centum has also established truly world-class
manufacturing facilities with cutting edge infrastructure as well as a global supply chain capable of
delivering products with high quality and reliability.
www.centumindia.com

About Centum Rakon India
Centum Rakon India, a joint-venture between Centum Electronics Ltd, India and Rakon Ltd, New
Zealand, is engaged in the design and manufacturing of high-performance frequency control products
for the telecommunications, industrial, defence, aeronautics and space markets. The product range
includes OCXO, TCXO, VCXO, clock oscillators and filters.