Here is why Ceragon shares are up 15%

Ceragon Networks Ltd (NASDAQ: CRNT) shares jumped 15% after Aviat Networks Inc (NASDAQ: AVNW) announced the submission of a non-binding agreement to purchase all Ceragon's outstanding shares currently not held in a cash transaction at $2.8 per share. As a result, as of June 24, 2022, Aviat held around 5% of Ceragon's shares outstanding, making the wireless transport solutions leader the third-largest stockholder.

Aviat took its proposal to shareholders after delays from the Board of directors

Aviat CEO and President Peter Smith stated:

Shareholders of Ceragon would get $2.8 in cash per share under the provisions of the offer, which was presented to the company's Board of directors, giving them instant and assured value. To give shareholders the chance to benefit from the merged company's tremendous potential, Aviat is still open to the idea of providing a part of the payment in the form of Aviat shares.

Smith added:

The proposed price represents a 34% premium on the last closing price of Cergon shares

The proposed price is significantly above the closing rate of Ceragon shares on June 27, 2022, by 34% and the 60-day volume-weighted average daily trading rate of Ceragon stock as of June 24, 2022, by 51%.

John Mutch, The Chairman of Aviat, stated: