M&A

2 November, 2009

UPDATE 1-Guest-Tek to go private for about C$8 mln, shares up

Agrees to sell shares at C$0.50 apiece

* Says co controlled by Guest-Tek CEO to acquire shares

* Shares soar 88 pct

Nov 2 (Reuters) - Guest-Tek Interactive Entertainment (GTK.TO), a provider of broadband technology to hotels, agreed to go private for about C$8 million, or 50 Canadian cents a share, a 100 percent premium to its Friday's close.

Guest-Tek said 1456537 Alberta Inc, an investment vehicle controlled by its Chief Executive Arnon Levy, will purchase all issued and outstanding shares of the company.

The company said it had about 15.8 million common shares outstanding and about 30 percent of it were held by public, while the rest were controlled by shareholders of 1456537 Alberta and M.P. Technologies.

Shares of the company were up 22 Canadian cents in morning trade Monday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Gopakumar Warrier)

Source: http://www.reuters.com