Yunqi Capital opposes STAAR merger with Alcon despite revised offer

Yunqi Capital Limited, which holds a 5.1% stake in STAAR Surgical Company (NASDAQ: STAA), said it remains opposed to the proposed acquisition by Alcon Inc. (NYSE: ALC) even at the revised offer price of $30.75 per share.

The Hong Kong-based investment firm released a letter to shareholders responding to updated recommendations from proxy advisors Institutional Shareholder Services Inc. and Glass, Lewis & Co. regarding the merger.

Yunqi Capital agreed with Glass Lewis's continued recommendation against the transaction but disagreed with ISS's recent decision to support the deal. The firm noted that ISS stated "it would not necessarily be unreasonable for a shareholder to remain opposed to this transaction."

According to Yunqi Capital, a third-party buyer with industry expertise emerged during STAAR's go-shop period but was not initially disclosed to shareholders. The firm said STAAR later acknowledged this party's outreach after questions were raised by stockholders, claiming the potential buyer did not contact STAAR until the third week of the go-shop period.

Christopher Wang, founder and chief investment officer of Yunqi Capital, said in the letter that recent events indicate shareholder value would be maximized if STAAR terminates the current agreement and initiates a strategic alternatives review in the future.

The firm expressed confidence in STAAR's standalone prospects, citing the company's proprietary ICL technology, global distribution infrastructure, and market penetration. Yunqi Capital noted that STAAR China is scheduled to launch the EVO ICL V5 product line in January 2026, which would be priced at approximately 30-70% premium to existing products.

Yunqi Capital manages over $250 million in assets and employs a fundamental long-short equity strategy focused primarily on companies with China connections.

You May Also Be Interested In

• JAB sells entire Keurig Dr Pepper stake for $3.4 billion
• Citi upgrades AMD to buy with $575 price target ahead of Q4 earnings
• Belden prices $1.85 billion term loan to fund RUCKUS acquisition