Listed electronics manufacturer Cirtek Holdings Philippines Corp. is pulling out of the base station antenna business after agreeing to sell substantially all assets of its United States subsidiary Quintel USA Inc. for up to $5.3 million.
In a disclosure on Tuesday, Cirtek said its board approved the sale of Quintel’s operating assets to Delaware-based John Mezzalingua Associates LLC, effectively handing over the core of the antenna business.
The deal covers Quintel’s operational assets, intellectual property, and key commercial agreements related to its base-station antenna operations.
According to the disclosure, the assets being sold include “certain customer contracts, accounts receivable, inventory, intellectual property rights (including Quintel trademarks and technology), order backlog, and related business records.”
Cirtek said the buyer will pay an initial $3.3 million within 14 days of closing.
The remaining roughly $2 million will be released after the final determination of deductible liabilities, a process expected to be completed within four months.
“The financial consideration for the transaction is subject to the deduction of assumed and other agreed liabilities, the final amount of which will be confirmed following the completion of the liability resolution process,” the company said.
The transaction was approved during a special board meeting on 15 June, with directors also authorizing the execution of the Asset Purchase Agreement and related documents needed to complete the sale.
Cirtek said Chairman and Chief Executive Officer Jorge Aguilar was authorized to sign the agreement, while management was instructed to carry out all actions necessary to implement the transaction.
The company did not disclose the expected impact of the divestment on earnings, nor did it indicate whether further restructuring measures are under consideration.
The sale marks Cirtek’s exit from the base station antenna business, ending Quintel’s role as a manufacturer and supplier of wireless network antenna solutions.
