NKT chair: Blocking of the Photonics sale came as a big surprise to us

Parties NKT and Hamamatsu Photonics are still tied to a framework agreement containing ”certain obligations,” says NKT chair.
According to the chairman, NKT has yet to know the reason for the rejection of the sale to Hamamatsu Photonics. | Photo: Nkt
According to the chairman, NKT has yet to know the reason for the rejection of the sale to Hamamatsu Photonics. | Photo: Nkt
BY MARKETWIRE, TRANSLATED BY SIMON ØST VEJBÆK

The Danish authorities’ dismissal of Japanese Hamamatsu Photonics’ attempt of acquiring NKT Photonics came as a major surprise for the seller, cable group NKT.

NKT chairman Jens Due Olsen does not believe it to impact the group’s expected investments in added production and installation capacity for cable activities, he says in an interview with MarketWire.

The rejection was passed as per regulations pertaining to the investment screening act, enabling the government to obstruct technology sales to foreign companies if deemed in violation of Denmark’s national security interests or if the sale poses a threat to public order.

According to the chairman, NKT is yet to know the reason for the rejection aside from the fact that it was passed in reference to the investment screening act. Obtaining authority approval falls on the buyer, which means the Japanese company were in dialog with Danish authorities.

”We have been wondering how long the process took. The Americans, the British, and the Germans all rubber-stamped the deal, so naturally it came as a major, major surprise to us,” says Due Olsen.

”But we are kept in the dark on the alleged basis of national security interests. So we are completely exempt from knowing the cause or anything about the process leading up to the decision,” he adds.

Parties NKT and Hamamatsu Photonics are still tied to a framework agreement, containing ”certain obligations,” says the chair.

”We are currently waiting on buyer to get back to us and enlighten us as to their course of action,” he says.

Could it have an impact on the investments that NKT are planning to carry out?

”We don’t think so, because Photonics represents a certain value, whether Hamamatsu – or any other actor – should decide to buy it. We still have a contract with Hamamatsu, representing some DKK 1.6bn. That is the full extent of it so far.”

”Now we are waiting on gaining insights into why the deal was blocked, so we can find out what happened. But all of that is in the hands of the buyer right now,” says Due Olsen.

But could the rejection urge you to bring in another DKK 1bn in added funding for your investments?

”It is still to early to call, if you ask me. We still have time. A factory expansion takes three years to complete, so it is not exactly like we are in dire need of the money,” says Due Olsen.


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