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Leading proxy advisor Glass Lewis recommends EXFO minority shareholders vote AGAINSTMr. Lamonde's going private transaction, in the face of VIAVI's US$8.00 per share binding superior proposal
- Glass Lewis highly critical of Mr. Lamonde for his "obdurate" rejection of VIAVI's proposal and of the EXFO Special Committee for "snubbing VIAVI's repeat approaches"
- Finds "fundamentally problematic" the EXFO Special Committee's rationale for recommending the going private transaction at an inadequate valuation
- Shareholders are encouraged to REJECT Mr. Lamonde's inferior US$6.00 per share going private transaction by voting AGAINST it prior to the August 11, 2021 proxy voting deadline for the Special Meeting of EXFO shareholders
SCOTTSDALE, Ariz., Aug. 6, 2021 /PRNewswire/ -- Viavi Solutions Inc. ("VIAVI") (NASDAQ:VIAV) announced today that proxy advisory firm Glass, Lewis & Co., a leading independent provider of proxy research and vote recommendations to the investment community, has recommended that shareholders of EXFO Inc. (TSX:EXF) (NASDAQ:EXFO) ("EXFO") vote AGAINST Germain Lamonde's inadequate going-private transaction. Mr. Lamonde's inferior transaction is valued at US$6.00 per share, well below VIAVI's binding superior proposal to acquire EXFO for US$8.00 in cash per share.
Glass Lewis made its recommendation to vote AGAINST Mr. Lamonde's going-private transaction after carefully reviewing the facts and arguments related to the transaction, relative to VIAVI's binding superior proposal.
"We welcome the unbiased recommendation of Glass Lewis and encourage EXFO shareholders to give significant weight to its advice." said Oleg Khaykin, President & CEO of VIAVI.
In recommending that shareholders vote AGAINST Mr. Lamonde's going-private transaction, Glass Lewis made the following points in its report:
VIAVI's Binding Superior Proposal
VIAVI previously submitted an increased binding proposal to EXFO's board of directors, including a definitive form of Arrangement Agreement, to acquire EXFO for US$8.00 in cash per share. VIAVI's binding superior proposal represents a significant premium of:
Additionally, VIAVI's binding superior proposal is higher than the US$5.75 to US$7.50 formal valuation range of EXFO's subordinate voting shares prepared by TD Securities Inc., acting as the EXFO Special Committee's own valuator in connection with Mr. Lamonde's going private transaction.
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. EXFO minority shareholders deserve better.
EXFO shareholders should REJECT Mr. Lamonde's inferior US$6.00 per share going private transaction at the Special Meeting of EXFO shareholders by voting AGAINST it, prior to the August 11, 2021 proxy voting deadline. EXFO shareholders should note that approval of Mr. Lamonde's going private transaction has a "majority of a minority" approval component at the Special Meeting of EXFO shareholders, which excludes all votes attached to shares controlled by Mr. Lamonde. Mr. Lamonde's going private transaction also requires court approval on the "fairness" of the transaction. Completion of the inferior going private transaction will not provide EXFO's minority shareholders with the opportunity to receive full and fair value for their investment.
The EXFO Special Committee is once again urged to work with VIAVI to maximize value for all shareholders, in accordance with its fiduciary duty.