Laser Precision Corp. said Wednesday it has agreed to sell a majority of its outstanding stock to a Danish corporation for $8 a share.
Laser Precision, a San Juan Capistrano manufacturer of equipment for the installation, testing and repair of fiber-optic cables, said its board has accepted an offer from GN Great Nordic Ltd. and will recommend that investors approve the bid.
At least two-thirds of Laser Precision's outstanding shares must be tendered by Dec. 2 for the deal to be finalized. GN Great Nordic would eventually acquire all of Laser Precision's shares, putting the total value of the purchase at more than $38 million.
News of the agreement boosted Laser Precision's stock in Wednesday's Nasdaq trading. It closed at $7.81 a share, up 94 cents.
The stock hit a high of $16.50 in 1991 but has performed erratically since then. It has fallen from $9.86 a share in November, 1993, to a low of $3.63 a share in July. It rebounded in late October amid speculation that an offer for the company was pending.
Though Laser Precision maintains its headquarters in San Juan Capistrano, it has only five employees there. It sold its Orange County manufacturing operation three years ago and now has most of its 155 employees in Utica, N.Y.
For 1993, the company reported a loss of $500,000 on revenue of $24.4 million.
GN Great Nordic, a manufacturer and supplier of telecommunications equipment, reported 1993 revenue of about $240 million.
The purchase of Laser Precision would be "a complementary acquisition" for GN Great Nordic, said a spokesman for investment bank S.G. Warburg & Co., which is managing the transaction. "They think it will help them build . . . their telecommunications business."
If the offer is approved by Laser Precision's shareholders, the company would become a subsidiary of GN Great Nordic, and its stock would no longer be publicly traded.
Laser Precision at a Glance
* Business: Manufacturer of equipment that tests, installs and repairs fiber-optic cables
* Founded: 1969
* Headquarters: San Juan Capistrano
* Chairman and chief executive officer: C. Frederick Sehnert
* Employees: 155
* 1993 revenue: $24.4 million
Source: Bloomberg Business News