VICTORIA – Vecima Networks could be up for sale after the company confirmed that it has retained Stifel Nicolaus & Company to assist the board of directors in “exploring and evaluating a range of strategic alternatives” to maximize shareholder value.
Those alternatives may include partnerships, alternative strategic business models, a sale of assets or other transactions. The broadband equipment manufacturer said that despite a strong balance sheet, its current share price does not accurately reflect “the present or potential value of its core technologies, business operations and asset holdings”.
"During this process, we will remain focused on managing our growth in revenue and profitability which is driven by our investment in research and development and introduction of new products," said chairman and CEO Dr. Surinder Kumar, in a statement.
Vecima added that it does not have a defined timeline for the strategic review, and there can be no assurance that the review will result in any specific action or transaction. No updates will be provided unless the process is terminated, a definitive agreement for a specific transaction is concluded, or the company otherwise deems further disclosure is appropriate or required.
