Coherent Confirms Receipt of Latest Proposal from Lumentum, Acquisition Continues to Unfold
SANTA CLARA, Calif., March 23, 2021 — Coherent confirmed it has received a revised acquisition proposal from Lumentum. Per terms of the latest offer, which is the sixth confirmed offer from Lumentum, Coherent stockholders would receive $230 per share in cash and 0.6724 shares of Lumentum common stock for each Coherent share that they own.
Coherent and Lumentum both confirmed the latest proposal on Tuesday, March 23. It follows Coherent’s announcement on March 18 that its board had determined a revised proposal from II-VI to be superior to terms of a Lumentum merger agreement into which Coherent and Lumentum entered on March 9. The latest II-VI proposal calls for II-VI to acquire Coherent in a deal worth approximately $7 billion with each share of Coherent common stock to be exchanged for $220 in cash and 0.91 of a share of II-VI common stock.
A Lumentum press release said the latest proposal will remain open until 11:59 p.m. Pacific time on Wednesday, March 24.
Ongoing coverage of this acquisition, with analyst insights, is available on Photonics.com.
A timeline of the acquisition history:
Jan. 19: Lumentum announces agreement to acquire Coherent in $5.7 billion deal; Coherent stockholders to receive $100 per share in cash and 1.1851 shares of Lumentum common stock. Coherent is subject to a termination fee of more than $200 million if it accepts a competing bid.
Feb. 8: MKS Instruments announces unsolicited purchase bid to acquire Coherent in $6 billion deal; Coherent stockholders to receive $115 per share in cash and 0.7473 of a share of MKS common stock. Coherent announces it will enter discussions with MKS.
Feb. 12: II-VI announces unsolicited purchase bid to acquire Coherent in $6.4 billion deal; Coherent stockholders to receive $130 per in cash and 1.3055 II-VI common shares for each Coherent share.
Feb. 16: Coherent announces it will engage in discussions with II-VI.
March 8: Coherent announces its board determined a revised proposal from II-VI to be superior to terms of multiple revised Lumentum agreements, and a revised proposal from MKS. II-VI to acquire Coherent in $6.2 billion deal; Coherent stockholders to receive $170 per share in cash and 1.0981 shares of II-VI common stock.
March 8: Coherent notifies Lumentum that it intends to terminate their merger agreement unless Coherent receives a revised proposal from Lumentum by March 11.
March 8: MKS announces it is removing itself from acquisition consideration following its revised bid; MKS to acquire Coherent for $250 per share, composed of $135 in cash and $115 in shares of MKS common stock.
March 8: Lumentum announces its intent to review II-VI’s proposal.
March 10: Lumentum and Coherent sign a revised merger agreement; Lumentum to acquire Coherent in a deal worth $6.6 billion. Each share of Coherent common stock will be exchanged for $175 in cash and 1.0109 shares of Lumentum common stock. Coherent is subject to a termination fee of more than $200 million if it accepts a competing bid.
March 12: Coherent announces that its board had determined a revised proposal from II-VI to be superior to terms of the latest Lumentum merger agreement; II-VI to acquire Coherent in a deal carrying an enterprise value of $6.8 billion. Each share of Coherent common stock to be exchanged for $195 in cash and one share of II-VI common stock.
March 17: Coherent confirms its receipt of a new proposal from Lumentum; Lumentum to acquire Coherent in a $6.9 billion deal. Each share of Coherent common stock to be exchanged for $220 in cash and 0.61 of a share of Lumentum common stock.
March 18: Coherent announces its board has determined a revised proposal from II-VI to be superior to terms of the latest Lumentum merger agreement; II-VI to acquire Coherent in a deal carrying worth approximately $7 billion. Each share of Coherent common stock to be exchanged for $220 in cash and 0.91 of a share of II-VI common stock.
March 23: Coherent confirms its receipt of a new proposal from Lumentum; Lumentum to acquire Coherent in a deal worth approximately $7 billion. Each share of Coherent common stock to be exchanged for $230 per share in cash and 0.6724 shares of Lumentum common stock.
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