Lumentum and II-VI up Coherent bids to $7bn

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Laser manufacturer Coherent has received two new acquisition proposals from Lumentum and II-VI, both valued at approximately $7bn.

The latest from Coherent is that it has determined II-VI's most recent bid of $7.01bn to be superior to Lumentum's $6.9bn bid announced on 17 March. However, yesterday Lumentum made a new offer of $7.03bn which is currently being evaluated by Coherent. 

The revised Lumentum proposal will remain open until 11:59pm Pacific Time tomorrow to provide Coherent's board with adequate time to evaluate the proposal. 

The Coherent bidding war so far:

19 January: Coherent accepts a $5.7bn acquisition offer from Lumentum

Coherent stockholders would receive $100.00 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own.

8 February: Coherent receives a $6bn acquisition offer from MKS Instruments

Each share of Coherent common stock would be exchanged for $115.00 in cash and 0.7473 of a share of MKS common stock.

12 February: Coherent receives a $6.4bn acquisition offer from II-VI

Each share of Coherent common stock would be exchanged for $130.00 in cash and 1.3055 shares of II-VI common stock. ​

8 March: Coherent determines that a revised $6.5bn offer from II-VI is superior to two revised offers from Lumentum and a revised offer from MKS Instruments

Each share of Coherent common stock would be exchanged for $170.00 in cash and 1.0981 shares of II-VI common stock. 

Under one of Lumentum’s revised proposals, each share of Coherent common stock would be exchanged for $175.00 in cash and 1.0109 shares of Lumentum common stock, coupled with a significantly high termination fee as a condition to accepting competing acquisition proposals. Under the other revised Lumentum proposal, each share of Coherent common stock would be exchanged for $170.00 in cash and 1.0109 shares of Lumentum common stock, coupled with a meaningfully high termination fee as a condition to accepting competing acquisition proposals.

Under the terms of MKS’ revised proposal, each share of Coherent common stock would be exchanged for $135.00 in cash and 0.7516 of a share of MKS common stock.

9 March: Coherent signs a revised $6.6bn merger agreement with Lumentum

Each share of Coherent common stock would be exchanged for $175.00 in cash and 1.0109 shares of Lumentum common stock. A $217.6m termination fee would be payable to Lumentum should Coherent accept a competing offer.

12 March: Coherent determines that a newly revised $6.8 billion offer from II-VI is superior to Lumentum’s offer

Each share of Coherent common stock would be exchanged for $195 in cash and 1.0 shares of II-VI common stock. 

17 MarchCoherent receives a revised $6.9bn acquisition offer from Lumentum and a revised $7.01bn acquisition offer from II-VI

Under the Lumentum proposal, each share of Coherent common stock would be exchanged for $220 in cash and 0.61 of a share of Lumentum common stock.

Under the II-VI proposal, each share of Coherent common stock would be exchanged for $220 in cash and 0.91 of a share of II-VI common stock.

Coherent determines the II-VI offer to be superior and notifes Lumentum that it intends to terminate their merger agreement unless it receives a revised acquisition proposal from Lumentum by 11:59pm Pacific Time on 22 March. Coherent would be required to pay the $217.6m termination fee to Lumentum if it accepts the II-VI agreement.

22 March: Coherent receives a revised $7.03bn acquisition offer from Lumentum

Each share of Coherent common stock would be exchanged for $230 in cash and 0.6724 of a share of Lumentum common stock. 

The revised proposal will remain open until 11:59pm Pacific Time on Wednesday 24 March to provide Coherent's board with adequate time to evaluate the proposal. 

UPDATE 24 March: II-VI maintains current proposal

II-VI informs Coherent that it will maintain it's current proposal, made on 17 March, which will expire at Noon Pacific Time on Thursday 25 March. II-VI believes its proposal would create significant value for the shareholders of both companies and that it remains superior to Lumentum’s latest proposal.

UPDATE 25 March: Coherent accepts II-VI's proposal

Each share of Coherent common stock will be exchanged for $220 in cash and 0.91 of a share of II-VI common stock at the completion of the transaction, which is expected to close in the fourth quarter of 2021.

Coherent will pay Lumentum a termination fee of $217.6m.

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