ATLANTA, Feb. 23, 2011 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE) today announced the receipt of auction bids for the February 22, 2011 auction sale of the Company's Fox International Ltd. subsidiary. The Company had previously announced its intent to sell the Fox International subsidiary through an auction process in order to streamline its efforts by concentrating on VDC's remaining business in the area of military, medical and commercial displays.
A Company spokesperson stated that Video Display's Board of Directors has received a management buyout bid for the Company's Fox International subsidiary which is in excess of the Balance Sheet equity value recorded on the Company's current financial statements and is in excess of the minimum bid required by the Board of Directors to affect a sale of the subsidiary.
In addition to the firm bid received, the Company received strong indications of interest from five industry participants who have requested an extension of 30 days of due diligence period to allow for additional meetings with the management team at Fox International and further review of the subsidiary financials and operations prior to submitting a final bid.
In an effort to generate the greatest possible value from the sale of the subsidiary, Video Display's Board of Directors has resolved to extend the due diligence time period for an additional 30 days through March 22, 2011 for those five interested parties only, which will grant the additional time necessary to develop their final decisions.
Upon the cessation of the additional 30 day due diligence period, subject to approval of VDC's corporate bankers, Video Display Corporation's Board of Directors will accept the Management buyout bid or a competing bid from one of the other five interested bidders should one be received in excess of the current bid.
About Video Display Corporation
Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial use with emphasis on high end training and simulation applications. Its product offerings include rugged AMLCD and CRT displays as well as complete projection systems utilizing VDC's Marquee™ line of projectors. Video Display Corporation operates 8 display design and manufacturing plants plus additional sales facilities throughout the United States and Europe.