Bidding on majority share Lionix starts, Dutch get to make first offer

Dutch stakeholders are given first opportunity to bid on the majority share of integrated-photonics outfit Lionix but will have to pay market price. A Dutch court gave a consortium of minority shareholders, including Photondelta, Oost NL and the University of Twente, two months to make a deal with Lionix’ current de facto owner, Monsoon Blockchain Storage. This US firm has claimed the shares in Lionix from Korea’s Magic Micro, which took a 75 percent share in the Enschede-based company in 2018. If no deal has been reached after two months, Monsoon can entertain offers from other parties, but the consortium will be given one final chance to top it.

A few weeks ago, Lionix and Oost NL successfully petitioned the court to force Magic Micro to accept a 1.5-million-euro loan as emergency funding. Although this offers some respite, stable ownership is required for long-term continuity. Dutch minority shareholders argued at the Overrijssel regional court that, based on company statutes, they should be allowed to buy Lionix at liquidation value, but the court decided that Monsoon is entitled to the highest possible price.

Not just any foreign owner will be acceptable. Last year, the Security Screening of Investments, Mergers and Acquisitions Act (Vifo Act) went into effect, enabling the Dutch government to scrutinize investments in critical sectors and/or sensitive technologies for threats to national security.