Cohort ups stake in Portuguese defence firm EID to 80pc

Independent technology group Cohort has acquired a further 23.09% of the share capital of Empresa de Investigação e Desenvolvimento de Electrónica (EID), for a cash consideration of €3.97m, it announced on Monday.

The AIM-traded firm said that brought its holding to 80% at a total cost of €15.19m, with the Portuguese government holding the remaining 20%.

As it previously, announced, Cohort had agreed that the Portuguese government should have “certain rights” in order to protect its shareholding and the interests of the Portuguese state, including the right to appoint a director to the board of EID.

EID is a Portugal-based supplier of advanced electronics, communications and command-and-control products and systems for the global defence market.

The acquisition was from existing shareholders Empordef and IAPMEI.

Cohort said the terms were the same as those set out in the original acquisition announcement of 5 August 2015, with the consideration to be funded from existing cash resources and debt facilities.

“We are pleased to have completed the second stage of the EID acquisition,” said Cohort chief executive Andrew Thomis.

“Since joining Cohort in 2016, it has been performing well and the team has demonstrated the quality of its specialist skills.

“With a good pipeline and exciting growth opportunities in the remainder of our financial year, we look forward to benefiting further from the strong customer relationships, high quality products and excellent people that EID brings to the group.”

The group added that it remained on course to meet the Board's expectations for the year to 30 April 2018.