EXFO's shareholders approve going private proposal

Aug. 16, 2021
The proposal calls for the shareholders to receive $6.25 per share – significantly less than the $8.00 per share fellow test equipment supplier VIAVI Solutions offered as an alternative.

EXFO Inc. (NASDAQ: EXFO; TSX: EXF) has announced that shareholders overwhelmingly approved, during a special meeting held August 13, Founder and Executive Chairman Germain Lamonde’s proposal to take the company private. The proposal calls for the shareholders to receive $6.25 per share – significantly less than the $8.00 per share fellow test equipment supplier VIAVI Solutions (NASDAQ:VIAV) offered as an alternative (see "EXFO’s Lamonde again turns away VIAVI approach").

Shareholders representing approximately 97.49% of the eligible voting shares attended the special meeting, according to EXFO. The company says 99.65% of the votes cast by shareholders, voting together as a single class, as well as 90.95% of the votes cast by the holders of subordinate voting shares, excluding the votes attached to shares held or controlled by Lamonde, CEO Philippe Morin, and 9356-8988 Québec Inc., voted in favor of the proposal.

"I would like to thank EXFO shareholders for their continued support over the years and in relation to the proposed transaction" said Lamonde after the vote.

The consummation of the privatization remains subject to customary closing conditions including the approval of the Superior Court of Québec.

The meeting capped a tense few weeks between Lamonde and VIAVI (see “EXFO, VIAVI assume battle stations ahead of special shareholder meeting”) that saw Lamonde raise his initial bid (see "Lamonde increases offer for taking EXFO private"). VIAVI, through a spokesman, declined to comment on the outcome of the vote.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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