Lumenpulse party at LIGHTFAIR 2016, San Diego
EXCLUSIVE: MUST CREDIT EDISONREPORT. The Lumenpulse privatization deal calls for a staggering 85% premium over the 26 APR closing price. We spoke to Francois-Xavier Souvay, Chairman, President, and CEO of Lumenpulse about his decision to take the company private at such a high price.
In my phone interview with FX, he shared the following, “I have been a lighting guy all of my life. As the son of a lighting designer, for me, building a world class architectural lighting company is what motivates me. Taking the company back to private will allow me to personally dedicate all of my time to this goal.”
FX offered insight into the deal:
- The price of $21.25 per share is a 45% premium over the weighted 90-day moving average.
- There are two ways to take a company private. One is through a public bid where you hope the investors accept the deal. The other method is to establish an independent committee and they hire an independent financial advisor to evaluate the company. In this case, the committed hired Pricewaterhouse Coopers (Pwc)
- The PwC evaluation valued the company between $20.00 and $23.00 per share.
The transaction should close at the end of June.