Viavi Solutions Urges EXFO Shareholders To Reject Germain Lamonde Offer At $6/Share To Go Private

Author: Benzinga Newsdesk | July 29, 2021 09:22am

- Shareholders are encouraged to REJECT Mr. Lamonde's inferior US$6.00 per share going private transaction at the EXFO Special Meeting of Shareholders on Friday, August 13, 2021

- Shareholders may also exercise dissent rights and demand to be paid the fair value of their shares

- In addition, shareholders may contest the fairness of Mr. Lamonde's going private transaction by appearing at the fairness hearing before the Québec Superior Court on Friday, August 20, 2021

SCOTTSDALE, Ariz., July 29, 2021 /PRNewswire/ -- Viavi Solutions Inc. ("VIAVI") (NASDAQ:VIAV) would like to thank EXFO Inc. (TSX:EXF) (NASDAQ:EXFO) ("EXFO") minority shareholders for their strong support to date for VIAVI's binding superior proposal to acquire EXFO for US$8.00 in cash per share. Those VIAVI has spoken to support VIAVI's binding superior proposal and believe that Germain Lamonde, EXFO's Chairman and majority shareholder, and the EXFO Special Committee should do what is right for all shareholders – not just Mr. Lamonde – and accept VIAVI's binding superior proposal.

Mr. Lamonde has issued a coercive ultimatum to EXFO minority shareholders: either accept his inadequate US$6.00 per share going private transaction or be forced to continue to hold EXFO shares – which traded at US$3.70 prior to the announcement of his going private transaction on June 7, 2021 – and could return to that trading level in light of Mr. Lamonde's refusal to consider a value-maximizing transaction that would benefit all EXFO shareholders.

As the EXFO Special Committee inexplicably continues to recommend Mr. Lamonde's inferior US$6.00 per share going private transaction, EXFO minority shareholders have asked VIAVI what options are available to them.

VIAVI firmly believes that EXFO shareholders deserve fair value. Shareholders should REJECT Mr. Lamonde's inferior US$6.00 per share going private transaction at EXFO's Special Meeting of Shareholders on Friday, August 13, 2021, and take the following actions:

• Demand your elected directors defend your rights. Call and write letters to Mr. Lamonde and the EXFO Special Committee, pinpointing their failure to act in the best interests of all shareholders and demanding they accept VIAVI's binding superior proposal. Mr. Lamonde has even publicly stated that his going private transaction was in response to shareholder pressure.
• Demonstrate the will of shareholders – other than Mr. Lamonde. If the EXFO Special Committee refuses to acknowledge the interests of all its shareholders and continues to recommend Mr. Lamonde's going private transaction, publicly express support for VIAVI's binding superior proposal to acquire EXFO for US$8.00 in cash per share (US$2.00 or 33.3% higher than the US$6.00 per share offer under Mr. Lamonde's going private transaction).
• Exercise your dissent rights. Registered shareholders of EXFO have the right to dissent with respect to the going private transaction and, if the transaction becomes effective, to be paid the fair value of their shares. To do so, a dissent notice must be sent to and received by EXFO by no later than 10:00 a.m. (Québec City time) on Wednesday, August 11, 2021. A non-registered shareholder who wishes to exercise dissent rights must make arrangements for the shares beneficially owned by such holder to be registered in the name of such holder through their Intermediary prior to the time the dissent notice is required to be received by EXFO or alternatively, make arrangements for the registered shareholder of such shares to exercise dissent rights on behalf of such Shareholder. Further information on your dissent rights is described in EXFO's circular for the going private transaction, available at EXFO's profile on SEDAR.
• Contest fairness. Shareholders may contest the fairness of Mr. Lamonde's going private transaction by appearing at the fairness hearing which, according to EXFO's circular, is currently expected to be presented before the Québec Superior Court on Friday, August 20, 2021 at 11:00 a.m. (Québec City time). Any shareholder who wishes to appear and be heard at the fairness hearing must file a notice of appearance with the Court's registry and serve same on EXFO's counsel, as described in EXFO's circular, no later than 4:30 p.m. (Montréal time) on Tuesday, August 17, 2021. Further details are described in EXFO's circular for the going private transaction, available at EXFO's profile on SEDAR.

VIAVI once again urges the EXFO Special Committee to uphold their fiduciary duty to act in the best interest of all shareholders – and to stop recommending Mr. Lamonde's inferior going private transaction that deprives shareholders of an additional US$2.00 per share in value.

VIAVI's binding superior proposal delivers compelling value to all EXFO shareholders, including Mr. Lamonde, who would receive the same significant premium as other shareholders, and given his sizeable interest, would benefit significantly.

EXFO minority shareholders deserve better and the EXFO Special Committee is urged to take this opportunity to work with VIAVI to maximize value for all shareholders.

Posted In: EXFO TSX:EXF VIAV