By Reuters | Updated: April 24, 2024
April 24 (Reuters) – Filtronic’s shares (FTC.L), opens new tab surged 50% to a decade-high on Wednesday after the British engineering group deepened its partnership with SpaceX’s Starlink platform and gave the Elon Musk-controlled company the option to take a stake.
Filtronic, which manufactures products for the aerospace, defence, space and telecom infrastructure markets, already supplies Starlink with E-band solid state power amplifiers (SSPA), which are used for low-earth orbit satellites.
The Leeds-based company said it will also develop and supply similar products at other frequency bands for Starlink, which provides internet services via low-earth orbit satellites.
SpaceX will also get 21.7 million warrants in Filtronic, enabling it to subscribe for up to 10% of its shares.
The partnership was executed with an initial purchase order of $19.7 million to supply E-band SSPA modules, scheduled for delivery in fiscal 2025, Filtronic said.
The company said it now expects fiscal 2025 results to surpass market expectations.
Its stock surged 50% to 49.1 pence, the highest in a decade, in morning trading. The company had a market value of about 71 million pounds (about $89 million) as of the close of trading on Tuesday. ($1 = 0.8042 pounds)
@ Thomson Reuters 2024
