Schaeffler increases takeover offer for Vitesco shareholders
In the battle for the favor of Vitesco shareholders, the automotive and industrial supplier Schaeffler now wants to give in and increase its offer. Schaeffler now wants to offer 94 euros per share in the drive specialist, the two companies announced on Monday in Regensburg and Herzogenaurach. Previously, the offer was 91 euros per share.
Vitesco still requires the approval of its shareholders for the project. According to Schaeffler CEO Klaus Rosenfeld, the offer period ends in mid-December. An Annual General Meeting of Vitesco is planned for April 24, 2024.
As recently as mid-November, Schaeffler had been reluctant to increase its offer: Schaeffler CEO Rosenfeld had indicated that he saw no need for any changes. According to earlier information, the Schaeffler family of industrialists already holds just under half of Vitesco through its associated companies and has secured a further stake of around nine percent via financial instruments.
In recent weeks, major Vitesco investors had publicly complained that the offer was too low in their opinion and demanded more. Vitesco CEO Andreas Wolf also considered the old offer to be too low - at least from a medium to long-term perspective.
Schaeffler and Vitesco also announced the conclusion of an agreement on the merger on Monday. Among other things, the agreement stipulates that the merged company will operate under the name Schaeffler AG in the future and have its headquarters in Herzogenaurach, Franconia. Vitesco man Thomas Stierle is to move up to the Executive Board, where he will be responsible for the Electromobility division.
Schaeffler expects the joint company to become one of the world's leading companies for vehicle and industrial drive systems, with annual sales of around 25 billion euros. The calculations assume that the merger will generate an effect of around 600 million euros annually in pre-tax profit, which should be realized for the first time in 2029.
Despite the initial reluctance from Schaeffler CEO Rosenfeld to increase the offer, the automotive and industrial supplier has now decided to boost its bid for Vitesco shareholders, offering 94 euros per share. This move comes as major investors and Vitesco's CEO themselves expressed concern that the original offer was too low, particularly from a long-term perspective.
Source: www.dpa.com
