STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Elecsys Corporation (“Elecsys” or “the Company”) (Nasdaq:ESYS) relating to the proposed buyout of the Company by Lindsay Corporation (“Lindsay”).
On November 4, 2014, Elecsys and Lindsay announced the signing of a definitive agreement pursuant to which Lindsay will acquire Elecsys in a transaction valued at approximately $70.5 million. Under the terms of the transaction, Elecsys shareholders are anticipated to receive $17.50 for each share of Elecsys stock they own. Elecsys has suspended its previously-announced stock repurchase program. The parties are targeting a January 2015 closing, though Elecsys shareholders will most likely be asked to vote on the transaction well before that time.
The transaction may undervalue Elecsys and represents a loss or no real gain for many Elecsys shareholders. In particular, according to Yahoo! Finance, at least one Wall Street analyst has issued a price target for Elecsys stock at $19.00 per share.
The firm’s investigation seeks to determine, among other things, whether Elecsys’ Board of Directors failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock.
If you currently own common stock of Elecsys and would like to learn more about the investigation being conducted by Brower Piven, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentinvestigations.html. You may also request more information by contacting Brower Piven either by email at firstname.lastname@example.org or by telephone at (410) 415-6616.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s.