QUEBEC — The board of director of Exfo Inc. has decided not to pursue an unsolicited takeover proposal from competitor Viavi Solutions Inc. after its controlling shareholder rejected anything but his deal to take the company private.
A special meeting will be held Aug. 13 to vote on the June 7 proposal from founder and majority shareholder Germain Lamonde.
Under the agreement, the company says shareholders will receive US$6 per subordinate voting share, representing a 62 per cent premium from where the shares were in the previous trading day.
Lamonde controls 61.46 per cent of Exfo outstanding shares and 93.53 per cent of voting rights.
Exfo's board, helped by legal advisers and following the unanimous recommendation of independent members, says it will not pursue the Viavi proposal because the "unambiguous statements" from Lamonde mean it can't be completed and is there not a "superior proposal" under terms of the existing proposal.
Viavi submitted a bid of US$4.75 per share in cash last November, which was increased to US$5.25 last May.
Founded in 1985, Exfo makes test, monitoring and analytics equipment for the communications industry.
This report by The Canadian Press was first published July 22, 2021.
Companies in this story: (TSX:EXF)