Stock Alert: EXFO Up 14% On Receiving Buyout Proposal

(RTTNews) - Shares of communications testing equipment maker for fixed and mobile telecom networks, EXFO Inc. (EXFO) are rising more than 14% Wednesday morning after the company received buyout proposal from Viavi Solutions Inc. (VIAV).

As per the proposal, Viavi has agreed to buy all outstanding subordinate voting shares and multiple voting shares of EXFO at a price of $7.50 per share or $430 million in cash.

This represents a premium of 103% to the closing price on June 4, 2021, the trading day before the announcement of the going private transaction by EXFO's majority shareholder, Germain Lamonde, and 25% to the $6.00 consideration offered under the Going Private Transaction.

"We are confident that the EXFO board of directors will agree that the Proposal is considerably more attractive to EXFO shareholders than the Going Private Transaction, and the Proposal would reasonably be expected to constitute a "Superior Proposal" under the terms of the Arrangement Agreement for the Going Private Transaction," Viavi said.

EXFO touched a new high of $7.24 this morning, before sliding to trade at $6.77 currently.