Smartflex Systems Adopts ‘Poison Pill’ Anti-Acquisition Plan

TUSTIN — Smartflex Systems Inc. said its board of directors has approved a “poison pill” plan to ward off unsolicited attempts to acquire the company.

Smartflex, a Tustin-based electronics manufacturer, adopted a plan in which shareholders could buy additional shares at half-price if an outside investor acquires at least 15% of the company or commences a tender offer.

The issuance of thousands of new shares at discounted prices would make it more costly and cumbersome for a would-be acquirer to mount a takeover effort, said Nick Yocca, a Newport Beach attorney who serves as Smartflex’s corporate secretary.

“The adoption of the shareholder rights plan is not a response to any current effort to acquire control of the corporation,” said William L. Healey, president and chief executive officer.

Smartflex closed at $10.625 per share, up 62.5 cents, in trading on the Nasdaq market.