Luminent Cancels Deal to Buy HG Genuine Opto
CHATSWORTH, Calif., and WUHAN, China, July 19, 2006 -- Luminent Inc. announced today that it has terminated the agreement to acquire HG Genuine Opto, a subsidiary of Huagong Tech Co. Ltd. (HG Tech), based on current market valuations of comparable companies.
Luminent, a wholly-owned subsidiary of network equipment and optical component maker MRV Communications, had reached an agreement in May with HG Tech to buy HG Genuine Opto of Wuhan, the second-largest fiber-optic transceiver manufacturer based wholly in China, for $40 million in cash and 15 percent of its stock (See "Luminent Buying HG Genuine Opto in Cash, Stock Deal").
Luminent said both companies agreed to terminate the deal and that it still hopes to find "mutually agreeable terms" in the future.
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