Aviat Failed to takeover Ceragon Networks
25 August, 2022
The door is closed: More than 90% of the shares voted against most of Aviat’s proposals. Aviat’s director nominees received support from less than 15% of total shares outstanding
Above: Ceragon’s 5G antenna and Zohar Zisapel, the chairman of the board
the chairman After weeks of tension and mutual accusations, the extraordinary general meeting (EGM) of Ceragon Networks’ shareholders, closed the door of opportunities and rejected the US-based Aviat Networks proposal to acquire Ceragon for $235 million. In fact, after the board had rejected the offer earlier this year, Aviat went to the public market and purchased Ceragon’s shares representing 5% of the company’s shares. Following the move, it called for an EGM in order to appoint five new directors, who support the proposed deal.
This is a classic move in the world of hostile takeovers, but this week it proved to be a wrong move: At the EGM, at least 80% of the shares voted against Aviat’s proposals, and more than 90% voted against most of Aviat’s proposals. Aviat’s director nominees received support from less than 15% of total shares outstanding, and less than 10% of total shares outstanding excluding Aviat’s own stake.
Ceragon provides wireless backhaul and fronthaul wireless transport solutions for 5G & 4G networks operated by more than 400 service providers and more than 800 private network owners. Revenues of Q2 2022 were $70.7 million, up 3.1% from $68.6 million in Q2 2021 and up 0.6% from $70.3 million in Q1 2022. The company reaffirmed its 2022 revenue guidance of $300-$315 million, and 2023 revenue guidance of $325-$345 million. “Our 5-year revenue target is approximately $500 million.”