STAAR Surgical’s Shareholder Yunqi Capital Opposes Proposed Merger With Alcon – Here’s Why

Hong Kong-headquartered investment management firm Yunqi Capital on Monday announced its opposition to STAAR Surgical Company’s (STAA) proposed sale to Alcon (ALC).

Yunqi holds a 5.1% stake in STAAR Surgical Company and has been an investor since 2023. The firm, which claims to be approximately the sixth-largest shareholder of STAAR, stated that it opposes the acquisition of STAAR on the terms announced in August.

Shares of STAAR traded 1% lower in the pre-market session, while ALC shares traded 1% higher. On Stocktwits, retail sentiment around the STAA ticker stayed within the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.

Yunqi alleged in a letter to other shareholders that it would not necessarily be opposed to a potential merger of the two companies at an appropriate price or on other appropriate terms. “In conclusion, while we are not necessarily opposed to supporting an acquisition of STAAR by a third party, including Alcon, at an appropriate price or on other appropriate terms, we remain open to a range of potential outcomes, including continued ownership of STAAR as an independent company for the foreseeable future,” it said. 

“Given STAAR’s momentum and bright future, we believe the $28 per share offer price significantly undervalues our company. We are disappointed that STAAR’s Board of Directors has agreed to sell our company to Alcon Inc. at this inadequate valuation and on the terms of the definitive merger agreement dated August 4, 2025,” it added in a letter to other shareholders.

Yunqi said that the Staar’s board failed in its responsibility by not running sufficient market checks or thoroughly soliciting potential interest from a range of alternative buyers and potential strategic partners. Yunqi also stated that it disagrees with the Board’s bleak assessment of the macroeconomic climate in China, which it believes contributed to the company’s decision to accept such a low offer price from Alcon.

Earlier this month, Broadwood Partners, L.P., and its affiliates also announced their intention to vote against the proposed acquisition. Broadwood is STAAR’s largest shareholder, owning 27.3% of STAAR’s common shares outstanding.

STAAR is a manufacturer of phakic intraocular lenses, a vision correction solution that reduces or eliminates the need for glasses or contact lenses. Alcon said in early August that the companies have entered into a definitive merger agreement under which Alcon will purchase all outstanding shares of STAAR common stock for $28 per share in cash. The transaction is expected to close in about six to 12 months and represents a total equity value of approximately $1.5 billion, it added.

Meanwhile, STAAR announced the expiration of the 45-day “window shop” period on Monday, stating that the company received no competing acquisition proposal despite Broadwood Partners actively exploring alternative buyers over the past few weeks. CEO Stephen Farrell noted that the expiration of the ‘window shop’ period with no competing acquisition proposal reinforces the Board’s conclusion that the Alcon merger maximizes value for STAAR stockholders.

“Collectively, the Board and management team understand the market risks, trends, and opportunities better than Broadwood, and Broadwood’s opposition to the transaction is unfounded,” Farrell said. The company also added that if the proposed merger is not approved, stockholders will be exposed to significant value destruction, and urged shareholders to reject Broadwood’s claims.

STAA stock is up 12% this year and down approximately 10% over the past 12 months.

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Editor's Note: The story has been updated with STAAR Surgical Company’s statement.

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