NEW YORK (TheStreet) -- Shares of Oplink Communications (OPLK) are climbing higher by 13.74% to $24.17 at the start of trading on Wednesday, after the company announced it will be acquired by Koch Industries' wholly owned subsidiary Koch Optics for approximately $445 million.
Oplink Communications, a company that designs, manufactures, and sells optical networking components and subsystems, said Koch Optics "will commence a tender offer and subsequent merger for all outstanding shares of Oplink common stock for $24.25 per share."
The offer represents a 26% premium to the average closing price for the 30-days preceding the announcement, Oplink said.
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Molex, a Koch Industries subsidiary and global electronics components company, will manage Oplink, as the transaction will "significantly expand Molex's fiber optic capabilities for technology development and new product innovation, Molex senior VP Tim Ruff said.
"This compelling transaction provides our shareholders with immediate and substantial cash value for their investment," Oplink CEO Joe Liu said.
Separately, TheStreet Ratings team rates OPLINK COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OPLINK COMMUNICATIONS INC (OPLK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."