Joint venture partner interested in acquiring Axcelis Technologies

By Lisa Kerner

Charlotte, N.C., Feb. 11 - Axcelis Technologies, Inc. said it received unsolicited letters on Feb. 4 and Feb. 11 from Sumitomo Heavy Industries, Ltd. in which Sumitomo made a contingent proposal to acquire Axcelis for $5.20 per share.

The Japanese company's proposed offer price is some 10% less than the average closing price of Axcelis over the last 52 weeks, according to an Axcelis news release.

Axcelis notified Sumitomo that its board of directors would review the proposal. The company said that, rather than wait for a response, Sumitomo then made the matter public.

In a Feb. 11 statement, Sumitomo claimed the Axcelis board has declined to engage in meaningful discussions regarding a possible business combination.

Axcelis advised its shareholders that no action is required from them at this time as the board continues to consider the proposal.

Sumitomo and Axcelis each own 50% of the shares of SEN Corp., a Japanese corporation that licenses technology from Axcelis. For 25 years, the two companies have owned the joint venture.

However, Sumitomo has "ambitions for SEN that are not in the best long-term interests of Axcelis and its shareholders," the Axcelis news release stated.

As previously reported, Axcelis investor Sterling Capital Management LLC recently urged the company to explore alternatives to enhance shareholder value.

Based in Beverly, Mass., Axcelis makes semiconductor manufacturing equipment.

Sumitomo Heavy Industries is an integrated manufacturer based in Tokyo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.