Com Dev Soars Most Since 2003 on Talks With Possible Buyers

Com Dev International Ltd. said it is in talks with possible buyers, sending shares of the Canadian maker of satellite parts up the most in 12 years.

Canaccord Genuity Group Inc. is assisting in the discussions, which are continuing, Com Dev said. The company didn’t name any potential suitors and said it won’t make any further comment unless there is a transaction to announce.

Com Dev commented after Reuters reported that the company was working on a sale. In July, Com Dev and partner Hisdesat Servicios Estrategicos SA postponed an initial public offering in their exactEarth venture, which provides satellite-based maritime traffic data. The company also completed acquisitions of two equipment makers in the past year.

“It makes sense,” said Hubert Mak, an analyst with Cormark Securities Inc., after the Reuters report. “They’re assessing the entire company as a whole, given that the IPO has dispelled.”

The stock gained 27 percent, the most since June 2003, to C$5.69 at the close in Toronto. The surge gave the Cambridge, Ontario-based company a market value of C$435.6 million ($333.5 million).

Com Dev manufactures space hardware and systems for use in communications, including 80 percent of all commercial satellites ever launched. It employs more than 1,250 people at facilities in Canada, the U.K., the U.S., India and China, according to its website.

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