It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Lumentum raises Coherent bid proposal to $6.9bn

Wed 17 March 2021 12:02 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Lumentum has increased its proposed offer for Coherent to $6.9bn (£5bn) - the biggest so far in a three-way tussle to buy the US optical fibre company.

Under the terms of the proposal Coherent shareholders would receive $220 a share in cash and 0.61 Lumentum share for each of Coherent share.

The proposal is worth $275 per Coherent share. Lumentum said as part of the proposal Silver Lake, a global technology investor, would invest $1bn in the combined group.

Lumentum said it was confident it could extract more synergies from the deal than previously predicted and estimated $219m to $244m of synergies.

Alan Lowe, Lumentum's chief executive, said: "We are pleased to now pursue this combination with the support of Silver Lake, whose investment is a compelling indicator of the power of this transformative opportunity."

Lumentum agreed a deal to buy Coherent for $5.7bn in January. The agreement was derailed when MKS Instruments and II-VI made counter-offers, triggering a series of raised offers from II-VI and Lumentum.

The bidders are looking to increase their share of the market for photonics, which is placed to gain from increasing adoption of 5G and consumer electronics.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast