News Article
Bookham Buys Up Nortel Division
Bookham Technology has agreed to acquire the Optical Transmitter and Receiver and Optical Amplifier businesses of Nortel Networks. As part of the combination, Nortel Networks has also agreed to enter into a $120mn supply agreement with Bookham.
Approval of the deal by Bookham's shareholders is need at an extraordinary general meeting to be held on November 5, 2002. Bookham has purchased these assets free from trade debtors and all other indebtedness. Substantially all of the employees of the businesses will be joining Bookham as part of the combination. Nortel will receive 61mn new ordinary Bookham shares, representing some 30% of the issued share capital. Bookham will also pay Nortel $10mn for restructuring expenses incurred by Nortel in connection with the combination. Nortel will also receive warrants and 3-5 year loan notes.
