Wi-fi transport firm Aviat Networks has made public its efforts to purchase competitor Ceragon, providing to amass Ceragon for $2.80 per share in money and asserting its intent to name a particular shareholder assembly in an try to switch Ceragon board members to get a friendlier reception to its supply. Aviat already owns greater than 5% of the corporate and says that it’s Ceragon’s third-largest shareholder.
That is the newest transfer in an ongoing negotiation that to this point has been rejected by Ceragon.
“Over the previous 12 months, we have now sought to have interaction on quite a few events with Ceragon’s Board and administration workforce to barter phrases for a transaction that we’re assured would ship significant near- and long-term worth for shareholders of each firms,” stated Aviat President and CEO Peter Smith in a press release. “We’ve got twice tried to moderately deal with issues voiced by Ceragon, and have met solely with delay and rejection. Together with Aviat’s Chairman, I traveled to Israel final week to fulfill in individual with Ceragon’s Chairman, CEO, and a member of its board. They refused to have interaction with us in constructive discussions, as an alternative making additional calls for for unorthodox and off-market provisions that appear meant solely to delay, leaving us with no different choice however to make Ceragon shareholders conscious of our proposal.”
Aviat stated in a firm assertion that it believes that “the mix of Aviat and Ceragon will create a number one world wi-fi transport specialist that’s extra environment friendly and aggressive, and higher positioned to supply better innovation and repair to their complementary buyer bases.”
Smith added that Aviat “[looks] ahead to giving Ceragon shareholders the chance to learn from this mix. We imagine they are going to acknowledge that our proposal gives compelling, fast and sure worth, considerably in extra of the worth that might be generated for Ceragon shareholders if Ceragon have been to stay a stand-alone entity. Though we very a lot choose to barter a transaction with Ceragon on a pleasant foundation, we’re ready to take all steps essential to pursue this transaction.”
Aviat says that it has referred to as for a Ceragon shareholder assembly “for the aim of accelerating the scale of the Ceragon board, eradicating three of Ceragon’s present administrators, and electing unbiased, well-qualified new board management that might consider pretty the proposal and negotiate for one of the best consequence for Ceragon’s shareholders.”
A letter to Ceragon from Aviat President and CEO Peter Smith, which was supplied to RCR Wi-fi Information by Aviat, notes that earlier proposals in November 2021 for $3.25 per share and April 2022 for $2.80 per share have been rejected by Ceragon’s management as insufficient. Smith says in his letter that Ceragon’s prime executives have averted engagement on worth discussions, insisted upon an exorbitant break-up payment within the occasion that the transaction was not accomplished, and different situations that Aviat doesn’t discover cheap—therefore the transfer to take the supply public and name for a shareholder assembly.
“Based mostly in your response to our proposals to this point, we imagine the time has come for brand spanking new board management that might consider our proposal and negotiate for one of the best consequence for Ceragon’s shareholders,” Smith stated in his letter.
RCR Wi-fi News has reached out to Ceragon for remark and can replace this story accordingly.