Friday, August 15, 2008

StockerYale extends shareholder offer for Virtek takeover, makes new offer

By Mass High Tech Staff

StockerYale Inc. has made two moves intended to further its chances of acquiring target Virtek Vision International Inc. of Canada. 

Salem, N.H.-based StockerYale (Nasdaq: STKR) has extended the expiration date for its cash takeover bid of 70 cents per share to 11:59 p.m. (Toronto time) on Aug. 25, 2008, officials said. The last extension of StockerYale’s original offer, tendered in May, was to expire on Aug. 8.

StockerYale also reported that on Friday, Aug. 8, the company submitted an alternative written offer to the board of directors of Virtek that would provide higher value to Virtek shareholders with an offer of 80 cents per share, plus some StockerYale common stock. The companies are currently in discussions about the new offer.

In addition, on Monday, Aug.11, Virtek filed an application with the Ontario Securities Commission (OSC), questioning whether StockerYale has sufficient funds to finance the bid price. StockerYale said it does not agree with Virtek’s view that it lacks sufficient funds, and is extending the expiration date of the takeover bid while it is in discussions with the OSC to resolve the issue, company officials said.

Mark Blodgett, StockerYale’s president and CEO, said that a negotiated transaction of the new written offer to the board “would better serve all parties’ interests.”

In June, StockerYale won an evergreen contract for its Photonics Products unit to supply an unnamed global technology company’s telecommunications division with customized, packaged laser diodes. The contract, according to StockerYale officials, is expected to be worth a six-figure dollar amount initially and increase over time.

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.