The company's shares have been battered this year, declining nearly 40 per cent since January
MONTREAL—Lumenpulse Inc.’s president and CEO, François-Xavier Souvay, along with several other existing shareholders, are planning to take the Quebec manufacturer private.
The deal, which has been unanimously approved by the company’s board, values Lumenpulse at about $600 million and offers shareholders $21.25 in cash per share.
The Montreal-area firm, which makes energy efficient LED lighting for commercial, institutional and home use, has been traded on the Toronto Stock Exchange since going public in a 2014 IPO.
“This transaction is another important step for Lumenpulse, its shareholders, employees, agents and valued business partners,” Souvay said in a statement.
“As a private company, we will have the resources and flexibility to continue our growth, increase our focus on innovation and the development of new products, and take another giant step towards becoming a true global leader in the high performance architectural specification grade lighting sector,” he added.
Lumenpulse’s shares have been battered this year, declining nearly 40 per cent since January. They were trading at $11.44 at close April 26, meaning the agreement would offer shareholders an 85.8 per cent premium at current prices. The offer also represents a premium of 44.8 per cent on the company’s 90-day volume weighted average.
Along with the company’s president and CEO, several other existing shareholders and Canadian management company Power Corp. are involved in the deal.
Two-thirds of Lumenpulse shareholders must approve the agreement for it to move forward.