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.

Stephen Hardy

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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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.