On September 1, 2015, the Company, Westport and Merger Sub entered into the Merger Agreement pursuant to which, the Company will be merged with and into Merger Sub (the “Merger”), with the Company surviving the Merger. Under the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each outstanding share of Common Stock of the Company will be cancelled and converted into the right to receive 2.129 shares (the “Exchange Ratio”) of common shares of Westport, subject to certain adjustments (the “Merger Consideration”). No fractional shares of Westport will be issued in the Merger, and holders of Company Common Stock will, instead, receive cash in lieu of fractional Westport shares, if any.
Concurrently with the execution of the Merger Agreement, one of the Filing Persons, Mr. Costamagna, entered into the Voting Agreement with Westport, pursuant to which Mr. Costamagna agreed to vote the shares of Common Stock of the Company that he beneficially owns (the “Shares”) at any meeting of the stockholders of the Company (or to consent in connection with any written consent of stockholders of the Company) or in any other circumstances upon which Mr. Costamagna’s vote, consent or other approval is sought, as follows: (i) in favor of adoption of the Merger Agreement and approval of the terms thereof and of the Merger and the other transactions contemplated thereby, (ii) against any action or agreement that has or would reasonably be likely to result in any conditions to the Company’s obligations in the Merger Agreement not being satisfied, (iii) against any Company acquisition proposal, and (iv) against any amendments to the Company’s charter and/or bylaws if such amendment would reasonably be expected to prevent or materially delay the consummation of the Merger. Pursuant to the Voting Agreement, Mr. Costamagna also granted Westport and each of its designees, and each of them individually, his irrevocable proxy and attorney in fact (until the termination date of the Voting Agreement) to vote the Shares as described above, in each case, if and only if Mr. Costamagna (1) fails to vote, or (2) attempts to vote in a manner which is inconsistent with the terms of the Voting Agreement. The Voting Agreement also restricts Mr. Costamagna from selling or otherwise transferring his Shares or the voting power thereof prior to the termination of the Voting Agreement. Further, to the extent that Mr. Costamagna acquires any additional shares of Common Stock, such shares shall be subject to the provisions of the Voting Agreement. Mr. Costamagna entered into the Voting Agreement solely in his capacity as a stockholder of the Company and nothing in the Voting Agreement will be deemed to govern, limit or relate to any action taken by Mr. Costamagna in his capacity as a member of the Company’s Board of Directors or in his capacity as an officer of the Company. The Voting Agreement and the related proxy granted shall terminate upon the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement, (c) any changes to the terms of the Merger without the prior written consent of Mr. Costamagna that (i) reduces the Exchange Ratio or (ii) changes the form of consideration payable in the Merger.
The description contained herein of the Voting Agreement does not purport to be complete and is qualified in its entirety by reference to such agreement, filed as Exhibit 99.2 to this Amendment No. 3.
Item 5. Interest in Securities of the Issuer.
(a) Mariano Costamagna is the direct beneficial owner of 1,634,185 shares, or approximately 9.0% of the 18,093,562 shares outstanding as of July 31, 2015 (the “Outstanding Shares”). For reporting purposes, Mariano Costamagna includes in the calculation of his ownership percentage the 1,584,589 shares that his brother Pier Antonio Costamagna owns directly, resulting in the reported ownership of 3,218,774 shares, or approximately 17.8% of the Outstanding Shares. Mariano Costamagna disclaims beneficial ownership of the 1,584,589 shares that his brother Pier Antonio Costamagna owns directly.
Pier Antonio Costamagna is the direct beneficial owner of 1,584,589 shares, or approximately 8.8% of the Outstanding Shares. For reporting purposes, Pier Antonio Costamagna includes in the calculation of his ownership percentage the 1,634,185 shares that his brother Mariano Costamagna owns directly, resulting in the reported ownership of 3,218,774 shares, or approximately 17.8% of the Outstanding Shares. Pier Antonio Costamagna disclaims beneficial ownership of the 1,634,185 shares that his brother Mariano Costamagna owns directly.
Bruna Giachino is the indirect beneficial owner of 1,634,185 shares, or approximately 9.0% of the Outstanding Shares, which are owned directly by Mariano Costamagna. Carla Borgogno is the indirect beneficial owner of 1,584,589 shares, or approximately 8.8% of the Outstanding Shares, which are owned directly by Pier Antonio Costamagna.