JDSU splits into Lumentum and Viavi next month

16 Jul 2015

Formal separation on August 1; offshoots Lumentum and Viavi to trade on NASDAQ; shareholder terms revealed.

JDSU has announced several key dates in connection with the splitting off of its Communications & Commercial Optical Products business segment, which is to be named Lumentum Holdings, and the associated special dividend distribution of approximately 80.1% of Lumentum's common stock to JDSU shareholders.

JDSU’s other business lines will be grouped together as Viavi Solutions, including monitoring equipment for both optical and wireless networks, and the former optical security and performance division. This week's announcement was made 10 months after the split was first announced in September 2014.

Tom Waechter, president and CEO of JDSU, and CEO-designate for Viavi Solutions, commented, “By operating as two independent companies, we believe Lumentum and Viavi Solutions will each be able to leverage a strong history while being more flexible and better positioned to capitalize on new opportunities in their respective markets.”

For every five shares of JDSU common stock held, existing JDSU shareholders will receive one share of Lumentum common stock. Shareholders will receive cash in lieu of fractional shares. The special dividend distribution is expected to be effective on Saturday, August 1, 2015. The distribution will be paid on the first trading day thereafter, Monday, August 3, 2015, to JDSU shareholders as of the close of business on July 27, 2015 who continue to hold shares until the ex-dividend date.

JDSU’s statement added, “The distribution of Lumentum common stock will complete the formal separation of CCOP from JDSU. After the distribution, Lumentum will be an independent, publicly-traded company. JDSU will be renamed Viavi Solutions and, at the time of the distribution, will retain ownership of approximately 19.9% of Lumentum's outstanding shares.

“Based on approximately 235.3 million shares of JDSU common stock outstanding as of June 27, 2015, a total of approximately 47.1 million shares of Lumentum common stock will be distributed to shareholders and approximately 11.7 million shares will be retained by Viavi. Viavi is committed to liquidating these shares within three years from the closing.”

The company also stated, “Prior to the distribution date, JDSU will mail information statements to all shareholders of JDSU common stock as of the record date. The information statement is an exhibit to the Form 10 that describes Lumentum, including the risks of owning Lumentum common stock, and other details regarding the separation, including information regarding the procedures by which the distribution will be effected and other details of the transaction. The information statement will be available on the US Government’s Securities and Exchange Commission website.

New fiber lasers

JDSU’s lasers and photonics division, which will soon be known as Lumentum, has recently launched a series of multi-kilowatt lasers based around its 2.1 kW “Corelight” module, which it demonstrated at last month’s LASER 2015 expo in Munich.

At the show, JDSU said its fiber laser development strategy “exploits the state-of-the-art laser diode manufacturing expertise at its San Jose, Ca, US, wafer production facility, which delivers high-brightness sources with the kind of reliability credentials built up through its long-standing experience in the telecommunications industry.”

About the Author

Matthew Peach is a contributing editor to optics.org.