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Stratasys board rejects proposal received from Nano Dimension
The Fly

Stratasys board rejects proposal received from Nano Dimension

Stratasys (SSYS) announced that its Board of Directors has unanimously rejected the revised unsolicited proposal received from Nano Dimension (NNDM) on March 29 to acquire Stratasys for $19.55 per share in cash. Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, the Stratasys Board of Directors carefully reviewed and evaluated the revised proposal. Following its review, the Stratasys Board concluded that Nano’s proposal continues to substantially undervalue Stratasys in light of its standalone prospects and is not in the best interests of Stratasys and its shareholders. The Stratasys Board and management team are confident that Stratasys’ standalone plan will create significantly greater value for its shareholders than the Nano proposal. In addition, Stratasys believes it is important to set the record straight on the many misleading statements made by Nano’s CEO, Mr. Yoav Stern, including the following: Contrary to statements made by Mr. Stern, Stratasys’ CEO Dr. Yoav Zeif has met with Mr. Stern only once, on March 9, 2023. This meeting was at Mr. Stern’s request. Dr. Zeif did not indicate any support for the proposal and made it clear that Stratasys would respond once the Board’s review of Nano’s proposal was completed. Other than this one meeting, there has been no contact or substantive discussion between Dr. Zeif and Mr. Stern, any directors or any other representatives from either company. The composition and authority of Nano’s board and management, generally, and hence their authority to submit and follow through on a bona fide acquisition proposal, remain unclear due to Nano’s pending court litigation with its largest shareholder, Murchinson Ltd. Murchinson requisitioned a meeting of Nano shareholders to, among other things, remove Mr. Stern and three other Nano directors and elect two new directors, with the goal of "reporting out to shareholders within 60 days of new directors being seated a cohesive strategy for enhancing value." Murchinson announced that the Nano shareholder meeting was held on March 20 and that all of the changes regarding the composition of Nano’s board, including the removal of Mr. Stern, were approved. Thus, Nano’s revised proposal, in addition to substantially undervaluing Stratasys, is also subject to significant uncertainty as to the composition, leadership and decision-making authority of Nano’s board. Pending the Israeli Court’s ruling on the March 20, Nano shareholder meeting and hence on the composition of its board, Nano’s authority to make and follow through on an acquisition proposal remains in question.

Published first on TheFly

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