Filtronic's shares surge 50% on deepening supply deal with Musk's SpaceX

(Reuters) -Filtronic's shares 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)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio D'Souza)