German electric vehicle components manufacturer Vitesco Technologies will receive a tender offer from Schaeffler AG, as announced by the company on Monday. The Schaeffer family-controlled firm aims to acquire all no-par value registered shares of Vitesco Technologies at a rate of 91 euros (USD 96.02) per share, representing a significant 21% premium over the closing price on the previous Friday.
No Minimum Acceptance Rate
Schaeffler AG clarified in a statement that the tender offer would not be contingent on reaching a minimum acceptance rate, underlining its commitment to the acquisition. The merger is anticipated to create a leading motion technology company, with four focused divisions and estimated revenues of around 25 billion euros.
Positive Market Response
Following the announcement, Vitesco Technologies’ shares surged by 18.2% as of 0610 GMT, demonstrating a positive response from the market.
Simplifying Shareholder Structure
As part of the takeover, Schaeffler AG intends to streamline its shareholder structure. This involves converting the listed preference shares into ordinary shares, ensuring that all remaining shareholders enjoy the same rights as the family holding the ordinary shares.
Timelines for Completion
The tender offer is expected to conclude in January 2024, with both companies working towards the successful completion of the merger. Currently, Vitesco Technologies, headquartered in Regensburg, Germany, and spun off from Continental two years ago, is valued at 3.64 billion euros. The Schaeffler family’s holding companies already possess approximately 49.9% of Vitesco Technologies, strengthening their position in the venture.