MRV Announces Intent to Take Luminent Public
January 26th, 2007
CHATSWORTH, Calif., Jan. 26 -- MRV Communications,
Inc. (Nasdaq: MRVC), announced today its intent to have its wholly-owned
subsidiary, Luminent, Inc. conduct an initial public offering of its equity
securities that, when made, will be registered under the Securities Act of
1933 with the Securities and Exchange Commission. Although the proposed
offering is expected to consist of Luminent's common stock and be firmly
underwritten, the amount and basic terms of the securities to be offered has
not been determined nor has any underwriter(s) been engaged. The proposed
public offering by Luminent is not expected to occur until after MRV completes
its previously announced acquisition of Fiberxon, Inc., which is expected to
occur during the first half of 2007, but the actual timing of the offering and
whether Luminent undertakes it in 2007 or 2008 will depend on a number of
factors, including the general condition of the securities markets, an
assessment by MRV's and Luminent's management of investors' inclinations to
invest in securities of companies engaged the same business and industry in
which Luminent is engaged, Luminent's performance and prospects for growth at
the time and other factors typically faced by companies generally when they
decide to go public. Among other things, the purpose of the offering would be
to raise sufficient proceeds to satisfy MRV's deferred consideration
obligation to the stockholders of Fiberxon, which MRV is incurring in
connection with the Fiberxon acquisition and which must be paid within 18
months of the closing of that acquisition, as well as to provide working
capital for Luminent to finance its operations independently without further
assistance from MRV.
The Blueshirt Group for MRV
Chris Danne, Rakesh Mehta
(415) 217-7722
chris@blueshirtgroup.com
rakesh@blueshirtgroup.com
Investor Relations
MRV Communications, Inc.
(818)886-MRVC (6782)
ir@mrv.com