Company: STAA
Filing Date: 2025-09-16
Form Type: DEFM14A
Source: 0001193125-25-204396
Chunk: 60

Company: STAAR SURGICAL CO
Filing Date: 2025-09-16
Form: DEFM14A
Chunk 60
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 of the China business to an economic downturn.

On November 20, 2024, the Board held a meeting to discuss a potential transaction with Alcon. Members of STAAR’s management
and representatives of Citi and Wachtell, Lipton, Rosen and Katz, STAAR’s legal counsel (“Wachtell Lipton”), attended the meeting. Mr. Frinzi provided an overview of his communications with representatives of Alcon, including
a summary of the October 29 Offer. Representatives of Citi provided an overview of potential strategic alternatives available to STAAR, as well as potential strategic or private equity counterparties. The Board and members of management and
representatives of Citi also discussed potential risks and disruption to the potential transaction with Alcon if STAAR were to engage in a process with other potential buyers, and the potential limits on the strategic fit and the ability of other
acquirors to afford to acquire STAAR. In addition, representatives from Wachtell Lipton discussed the directors’ fiduciary duties under Delaware law in considering the potential transaction with Alcon and any alternative acquirors. The Board
discussed STAAR’s standalone strategy, as well as the potential risks and merits of a transaction with Alcon and the potential value creation for STAAR stockholders from such a transaction relative to STAAR’s standalone business plan.
Following discussion, the Board authorized management to (i) engage with Alcon to continue pursuing a potential acquisition of STAAR by Alcon, (ii) to enter into an engagement letter with Citi to serve as financial advisor to STAAR in
connection with the potential transaction and (iii) to formally engage Wachtell Lipton as legal advisor to STAAR in connection with the potential transaction.

On November 21, 2024, representatives of legal counsel to Alcon sent an initial draft of the merger agreement to representatives of
Wachtell Lipton. Among other things, the draft merger agreement provided that (i) Alcon would not be required to agree or commit to any remedial action to obtain any required regulatory approvals,
(ii) non-solicitation restrictions would prohibit STAAR from soliciting or engaging in discussions with competing bidders, (iii) a termination fee of 4% of the implied equity value of the transaction
(approximately $120 million) would be payable by STAAR if STAAR terminated the merger agreement to enter into a superior proposal, and (iv) a fee of 2% of the implied equity