Shares of Avago Technologies Ltd ( NASDAQ:AVGO ) opened at 117.46 on Thursday. Shares of Avago Technologies ( NASDAQ:AVGO ) traded down .68% during trading on Wednesday, reaching $121.31. The company’s stock had a trading volume of 869,219 shares. The firm’s 50-day moving average is $122.81 and its 200-day moving typical is $127.61. Avago Technologies has a 12-month low of $83.50 and a 12-month higher of $150.50. The stock has a marketplace capitalization of $33.40 billion and a PE ratio of 31.82. Avago Technologies (NASDAQ:AVGO) final announced its quarterly earnings final results on Wednesday, August 26th.
Avago Technologies Restricted is a designer, developer and worldwide supplier of a variety of analog semiconductor devices with a focus on III-V based items. Following completion of the transaction, Mr. Tan, President and Chief Executive Officer of Avago, will continue to serve as President and Chief Executive Officer of the combined firm, which will adopt the name Broadcom Restricted.
Beneath the terms of the definitive agreement, Avago will obtain Broadcom for $17 billion in cash consideration and the financial equivalent of roughly 140 million Avago ordinary shares, valued at $20 billion as of May 27, 2015, resulting in Broadcom shareholders owning about 32% of the combined company. Primarily based on Avago’s closing share value as of Could 27, 2015, the implied worth of the total transaction consideration for Broadcom is $37 billion.
The receipt of the restricted equity is expected to be tax free of charge to former Broadcom shareholders, and if a requested tax ruling is obtained from the IRS, the receipt of HoldCo ordinary shares will also be tax totally free to the Broadcom shareholders. Receipt of HoldCo ordinary shares by former Avago shareholders is expected to be tax totally free.
Avago intends to fund the $17 billion of money consideration with cash on hand from the combined businesses and $9 billion in new, fully-committed debt financing from a consortium of banks. The transaction has been unanimously approved by the boards of directors of each organizations, as well as a specific committee of the independent directors of Broadcom. Avago also today issued a separate press release announcing its second quarter fiscal year 2015 monetary final results.