Staar Surgical Co. (Nasdaq: STAA), a Lake Forest-based maker of implantable eye lenses, should sell its China unit, according to a letter from an investor, Reuters reported.
Anatole Investment Management, a Hong Kong-based investment firm, argued in a letter to the company that the stand-alone China business, which represents about 80% of Staar’s revenue, could be worth as much as $5 billion. Anatole, which owns roughly 4.2% of Staar, said it’s undervalued and not reaching its “huge growth potential,” Reuters reported.
The shares, which have fallen nearly 50% since February, climbed 2.1% to $41.82 and a $2 billion market cap in today’s trading.
A Staar spokesman told Reuters that the company has responded to Anatole’s letter, saying the company is “open-minded” on how to maximize value for shareholders.
Staar is scheduled to report third-quarter results on Nov. 1 after the market closes.
