Company: STAA
Filing Date: 2025-08-29
Form Type: PREM14A
Source: 0001193125-25-192889
Chunk: 62

Company: STAAR SURGICAL CO
Filing Date: 2025-08-29
Form: PREM14A
Chunk 62
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 of legal counsel to Alcon sent an updated 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 commit to any remedy to obtain any required regulatory approvals, (ii) Alcon would consider whether to agree to pay a fee
(with the amount unspecified) to STAAR if the merger agreement was terminated in certain circumstances related to the failure to receive certain required regulatory approvals, (iii) non-solicitation
restrictions would prohibit STAAR from soliciting or engaging in discussions with competing bidders, with a termination fee of 4% of the implied equity value of the transaction (approximately $120 million) payable by STAAR if STAAR terminated the
merger agreement to enter into a superior proposal, and (iv) a fee would be payable by STAAR if its stockholders did not approve the merger.

On December 23, 2024, the Board held a meeting to discuss the status of the potential transaction with Alcon, with members of
STAAR’s management and representatives of Wachtell Lipton participating. Mr. Frinzi noted that Alcon and STAAR were working towards completing negotiations prior to the J.P. Morgan Healthcare Conference in early January, but that Alcon
was still conducting due diligence and focused on understanding the potential impact of the macroeconomic climate in China on STAAR ICL sales, inventory levels at distributors, and STAAR’s growth rate. The Board reviewed risks and
opportunities that could impact STAAR’s future operations and expected revenue growth. Representatives from Wachtell Lipton discussed the terms of the draft merger agreement with the Board. The Board engaged in further discussions regarding
the standalone value creation opportunity and the potential risks and benefits of reaching out to potential alternative acquirers. The Board also discussed whether to engage in discussions with a significant STAAR stockholder (“Stockholder
A”) regarding the potential transaction. Following these discussions, the Board directed management to continue to engage in negotiations with Alcon and work to complete Alcon’s diligence requests.

On January 3, 2025, Mr. Endicott contacted Mr. Frinzi to indicate that based on Alcon’s diligence, including
Alcon’s concerns regarding the macroeconomic climate in China and projected levels of STAAR ICL sales, inventory levels held by distributors, and STAAR’s growth rate, Alcon was no longer interested in pursuing an acquisition of STAAR.