Lamonde increases offer for taking EXFO private

Aug. 9, 2021
EXFO says that the new terms have enticed at least some shareholders to agree to back the going-private proposal when shareholders meet this Friday, August 13.

Germain Lamonde, chairman, co-founder, and controlling shareholder of EXFO Inc. (NASDAQ: EXFO; TSX: EXF) has increased the price he’s willing to pay to take the company private. EXFO says that 11172239 Canada Inc., the company through which Lamonde proposes to enact the transaction, now will pay $6.25 for each subordinate share that he and CEO Philippe Morin don’t hold.

The offer is an increase of $0.25 per share, but still doesn’t match the $8.00 per share that competitor VIAVI Solutions (NASDAQ:VIAV) has offered and Lamonde has rejected (see “EXFO’s Lamonde again turns away VIAVI approach”). Nevertheless, EXFO says that the new terms have enticed at least some shareholders to agree to back the going-private proposal when shareholders meet this Friday, August 13. Westerly Capital Management LLC, Chris Galvin, and EHP Funds Inc., which control 3,161,487 subordinate voting shares – 14.7% of the total of such shares – have signed support and voting agreements to back the going-private transaction.

"We have been long-term supportive shareholders of EXFO and we support Mr. Lamonde's revised offer to take EXFO private. We believe that the transaction represents a fair outcome for EXFO's minority shareholders as it provides actionable, attractive, and immediate liquidity," said Galvin, who is a managing partner at Westerly Capital, via an EXFO press release.

"I am very pleased that, in line with the positive recommendation from ISS – Institutional Shareholder Services Inc, the leading third-party proxy advisory firm, we have received strong endorsements from several of our largest minority shareholders for the proposed transaction, including Westerly Capital and Mr. Chris Galvin, as well as EHP Funds Inc., both amongst the largest minority shareholder of EXFO," said Lamonde via the same release.

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