Robbins LLP: Acquisition of Mattson Technology Inc. (MTSN) by Beijing E-Town Dragon Semiconductor May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Mattson Technology Inc. (NASDAQ: MTSN) by Beijing E-Town Dragon Semiconductor. On December 1, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Beijing E-Town will acquire Mattson Technology. Under the terms of the agreement, Mattson Technology shareholders will receive $3.80 in cash for each share of Mattson Technology common stock.
Is the Proposed Acquisition Best for Mattson Technology and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Mattson Technology is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $3.80 merger consideration represents a premium of only 22.6% based on Mattson Technology’s closing price on December 1, 2015. This premium is significantly below the average one-day premium of nearly 98% for comparable transactions within the past five years. In the last three years, Mattson Technology traded as high as $5.10 on March 3, 2015, and most recently traded above the merger consideration – at $3.86 – on June 15, 2015.
On October 29, 2015, Mattson Technology reported strong earnings results for its third quarter 2015. Net income for the quarter was $2.0 million, an increase of 277% compared to the same period last year. Additionally, Mattson Technology has beat consensus analyst estimates for sales in each of the past nine quarters. In commenting on these results, Mattson Technology President and Chief Executive Officer Fusen Chen remarked, “In spite of challenging industry conditions, I am pleased with our ability to achieve top line results at the high end of expectations. Further, our flexibility in managing our cost structure to align with changes in industry demand, without sacrificing our focus on our customers’ success, enabled us to exceed our own expectations for profitability.”
In light of these facts, Robbins LLP is examining Mattson Technology’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Mattson Technology shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Mattson Technology shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.