On March 11, 2021, engineered materials and optoelectronic components maker II-VI Incorporated (Pittsburgh, PA) has delivered a revised proposal to Coherent (Santa Clara, CA) to acquire all of the outstanding shares of Coherent common stock in a cash and stock transaction. Coherent’s Board of Directors has informed II-VI that it deems II-VI’s March 11th proposal superior to Coherent’s March 9, 2021 merger agreement with Lumentum Holdings Inc.
Under the terms of the revised II-VI proposal, Coherent’s shareholders would receive $195.00 in cash and 1.0 II-VI common share for each Coherent common share, which implies a total enterprise value of $6.8 billion and total per share consideration of $272.68 based on the 10-day volume weighted average price (VWAP) of II-VI shares as of March 10, 2021.
II-VI’s revised proposal includes $4.8 billion of fully committed debt financing from J.P. Morgan Securities LLC and a $1.5 billion equity investment from Bain Capital. II-VI continues to expect the transaction will be accretive to non-GAAP EPS in the second year following closing.
Source: II-VI Incorporated press release – March 12, 2021
UPDATE – March 18, 2021: On March 17, 2021, II-VI delivered to Coherent’s Board of Directors a revised proposal to acquire all of the outstanding shares of Coherent common stock in a cash and stock transaction. Under the terms of the revised II-VI proposal, Coherent’s shareholders would receive $220.00 in cash and 0.91 of a share of II-VI common stock for each Coherent share, which implies a total per share value of $287.18 based on the 10-day VWAP of II-VI common stock, ending March 16, 2021.
II-VI’s revised proposal includes $5.4 billion of fully committed debt financing from J.P. Morgan Securities LLC and a $1.5 billion equity investment from Bain Capital.
LFW Staff
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