Stocks

EXFO surges on founder buyout

EXFO Inc. said Monday that a corporation controlled by Germain Lamonde, EXFO’s founder and majority shareholder, will buy all of the issued and outstanding subordinate voting shares of the corporation, except for 3.7 million subordinate voting shares already controlled by Germain Lamonde.

As of June 7, Germain Lamonde controls, directly or indirectly, the excluded shares and 31.6 million multiple voting shares, representing 14.2% of the issued and outstanding subordinate voting shares, and 100% of the issued and outstanding multiple voting shares.

Shareholders will receive $6 a share in cash, representing a 62% premium to the closing price Friday.

The board of directors of EXFO unanimously approved the deal, with Mr. Lamonde and Philippe Morin recusing themselves.

Upon completion of the proposed transaction, Mr. Lamonde will directly or indirectly beneficially own or control all of the issued and outstanding subordinate voting shares and multiple voting shares.

EXFO shares were halted at $3.70 in premarket trading.

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