Lexmark Shareholders Approve Acquisition by Apex Technology and PAG Asia Capital
Lexmark International reported today that its shareholders have approved a merger agreement under which Lexmark will be acquired by a consortium of investors led by China’s Apex Technology, PAG Asia Capital, and Legend Capital Management. Once the transaction is completed, Lexmark shareholders will receive $40.50 per share in cash.
The firm reports that 70 percent of the outstanding Lexmark shares were voted at the special shareholder meeting held on July 22nd. Of the Lexmark shares that were voted, 99 percent were voted in favor of the merger.
Lexmark also notes that the transaction remains subject to various regulatory approvals, including approval by the Committee on Foreign Investment in the U.S., and other customary closing conditions. It expects to complete the transaction in the second half of 2016.
Lexmark will also report its second-quarter 2016 earnings on July 29th. It will not however host a conference call with securities analysts and investors when it reports its earnings, and doesn’t expect to do so in future quarters while this transaction is pending.
In a prepared statement Lexmark Chairman and CEO Paul Rooke commented on Lexmark shareholders’ approval of the proposed merger: “Today our shareholders approved this definitive merger agreement by an overwhelming margin. This transaction is in the best interests of our shareholders, and we are confident it will benefit our customers, provide new opportunities for our employees, and enable Lexmark to continue to grow, innovate and expand our market presence in the Asia Pacific region.”
- May 2016: Lexmark Employees Seek to Block Apex Acquisition, Citing Chinese-Hacking Concerns
- April 22, 2016: This Week in Imaging: Lenovo to Sell Lexmark Printers? A Look at Apex’s Lexmark Acquisition
- April 20, 2016: Apex Technology and PAG Asia Capital to Acquire Lexmark for $3.6 Billion; ‘Business as Usual,’ but Asia Expansion Seen