SAN DIEGO and FREMONT,
Calif., Nov. 19, 2014 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Oplink Communications,
Inc. (NASDAQ: OPLK) by Koch Industries, Inc. On November 19, 2014, the two companies announced
the signing of a definitive merger agreement pursuant to which Koch
Industries will acquire Oplink Communications. Under the terms of
the agreement, Oplink Communications shareholders will receive
$24.25 in cash for each share of
Oplink Communications common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/oplink-communications-inc
Is the Proposed Acquisition Best for Oplink Communications
and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Oplink Communications is undertaking a fair process
to obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $24.25
merger consideration represents a premium of only 14.1% based on
Oplink Communications' closing price on November 18, 2014. This premium is significantly
below the average one-day premium of 32.1% for comparable
transactions within the past three years. Further, the
$24.25 merger consideration is
significantly below the target price of $26.25 set by an analyst at B Riley & Co on
October 31, 2014.
On October 30, 2014, Oplink
Communications released its earnings results for its first quarter
2015, reporting strong quarterly earnings. Specifically, Oplink
Communications reported revenue for the quarter of $57.1 million, an increase of 12% from prior
quarter revenue of $51.1 million, and
a 4% increase from first quarter fiscal 2014 revenue of
$54.8 million. GAAP net income for
the first quarter, which includes the results of Oplink Connected,
was $0.6 million, or $0.04 per diluted share, compared to a net loss
of $4.2 million, or ($0.23) per diluted share, in the prior
quarter. In commenting on these results, Oplink
Communications Chairman and Chief Executive Officer Joe Liu remarked, "We are pleased to announce
our highest ever quarterly revenue, driven primarily by demand in
the North American datacom markets and the continued wireless
network build-out in China. These
results highlight the fundamental strength of our core optical
business, and we are intently focused on capitalizing on the growth
opportunities ahead."
In light of these facts, Robbins Arroyo LLP is examining Oplink
Communications' board of directors' decision to sell the company
now rather than allow shareholders to continue to participate in
the company's continued success and future growth prospects.
Oplink Communications shareholders have the option to file a
class action lawsuit to ensure the board of directors obtains the
best possible price for shareholders and the disclosure of material
information. Oplink Communications shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
SOURCE Robbins Arroyo LLP