Monday, July 28, 2008

StockerYale jacks up Virtek offer by 14 cents per share

By Mass High Tech Staff

Salem, N.H.-based laser and LED-maker StockerYale Inc. has increased its cash takeover bid for Canadian laser technology developer Virtek Vision International Inc. to 78.2 cents per common share. The offer represents an increase of more than 14 cents per share over its previous offer (made in May) and consists of 68.5 cents per common share at closing, plus a cash distribution of 9.8 cents per share within 60 days after the completion of the deal to each Virtek shareholder.

The deal also includes an extension of the offer’s expiration which will now fall at 11:59 p.m. (Toronto time)  on August 8, 2008.

All terms of the offer dated June 25, 2008, other than price and the expiration time, remain unchanged.

StockerYale (Nasdaq: STKR) made its first offer to the company on May 13 and has indicated that, while officials believe the deal is in the best interest of Virtek shareholders, the company has been unresponsive in negotiations.

The new deal represents an 82 percent premium above Virtek’s closing price on May 13, 2008, the day of the first offer, and a 100 percent premium over the company’s 90-day average closing price, according to StockerYale.

Virtek declined StockerYale’s first offer, citing that the deal was “not in the best interest of shareholders.”

Virtek is a provider of laser-based templating, inspection, marking and engraving systems for industrial material processing.

Founded in 1946 as Stocker & Yale Inc., the photonics company reported a 2007 net loss of $8.5 million on revenue of $29.9 million.