Adtran stockholders approve $1.2bn merger
Adtran's stockholders have approved the ongoing $1.2 billion merger with Adva Optical Networking SE, by an overwhelming majority.
During a special meeting of stockholders held on 06 January 2022, a quorum (the minimum number of people required at a meeting in order for decisions to be made) was achieved with 85% of Adtran’s outstanding shares presents. Of that, over 99% voted in favour of the transaction.
The news marks the latest milestone towards a successful closing of the merger deal. To date, the transaction has been unanimously approved by the Adtran board of directors, as well as the Adva management and supervisory boards, who also have recommended that Adva shareholders to accept the offer.
In addition, the deal has also received strong support from Adva’s largest shareholder, Egora, which committed to tender into the offer 13.7% of Adva’s outstanding shares and received confirmation that public review was not needed by all required antitrust organisations.
Following this latest milestone, the next step will be the close of the initial acceptance period for the tender of Adva shares on 12 January 2022, at least 70% of the Adva shares must be tendered by this time.
Additionally, both parties continue to work towards obtaining the required foreign direct investment approvals.
Announced back in August 2021, the combined company will create a fibre networking company with combined revenue of $1.2 billion.
Once completed, the merged company would be “stronger and more profitable”, and would be “poised to benefit from the unprecedented investment cycle in fibre”.
The merger will be carried out by an all-stock transaction, with Adtran shareholders getting 54% of the merged company and Adva’s shareholders the other 46%.