Shares of Voxx International Corp. (NASDAQ: VOXX) surged on Tuesday following the announcement that the company’s president, Beat Kahli, has agreed to sell 50% of his stake in the company to Gentex Corp. This move has generated notable excitement among investors.
Voxx International Corp.’s stock experienced a significant increase of 9.1% to reach $8.50 during post-market trading on Tuesday, after having fallen by 2% at the close. However, it is important to note that despite this recent surge, shares have declined by 7% throughout the course of this year.
In a separate transaction, Avalon Park Group, in which Kahli holds a controlling interest, will also be selling 50% of its ownership stake to Gentex. The sale will be divided into two tranches, ultimately granting Gentex a 15.1% stake in Voxx International Corp. once both transfers are finalized.
With regards to the agreement between the two parties, Gentex acquired 1.57 million shares on October 6th for $10 per share, representing a premium of approximately 33% over the closing price of Voxx’s shares as of October 5th. The second tranche, also consisting of 1.57 million shares, is expected to be completed by January 5th, cementing Gentex’s increased involvement with Voxx.
As part of this deal, Gentex’s Chief Executive, Steve Downing, will join Voxx International Corp.’s board as a director. This collaborative effort will focus on various projects concerning automotive technology and biometrics.