Newport Electronics Chairman Offers to Buy Company

Barret B. Weekes, chairman and president of Newport Electronics Inc., has offered to purchase the company for $9 a share in an all-cash deal valued at $7.4 million.

Weekes is proposing to buy the 72% of the company’s 1.1 million shares outstanding not already owned by himself and seven other senior managers of the firm, who may participate in the buyout. Weekes personally holds a 20% stake in the electronic instruments maker, according to a federal filing.

The proposal is the third buyout offer for Newport Electronics in the past 2 months.

On Jan. 13, the company said it had rejected an $8.50-per-share offer from InterVen Partners, a Los Angeles venture capital firm. In December, Newport received an $8-per-share buyout proposal from Sensor Control Corp., a Sunnyvale electronics company.

Newport officials declined comment Friday. It could not be determined whether the firm is still considering the Sensor Control offer.

Newport’s stock closed Friday at $8.25, up 87.5 cents on the over-the-counter market.

Weekes made his proposal in a letter to the Santa Ana-based company’s board of directors on Thursday.

In a filing with the Securities and Exchange Commission, Weekes said he has discussed his plans with seven other officials of the company. “Although (the seven officials) have indicated support for such proposal and an interest in participating, no definite arrangements have been discussed or agreed to,” the filing said.

Weekes said he has hired Barrington Associates of Los Angeles as his financial adviser and is “highly confident” of obtaining financing.

Newport reported earnings of $499,000 on revenue of $13 million for the first 9 months of 1988.