Schaeffler increases offer price for Vitesco

Schaeffler AG

27/11/2023 08:29

Nov 27 (Reuters) - German automotive supplier Schaeffler
AG  SHA_p.DE  said on Monday it has increased its offer price in
a voluntary public tender offer for Vitesco Technologies
 VTSCn.DE  shares.
    Schaeffler decided to increase the offer price to 94 euros
($102.53) from a previous 91 euros per share, the
family-controlled company said in a statement.
    "The decision was made after careful consideration of the
prevailing market sentiment, and underscores Schaeffler's
confidence in the significant synergies and the value creation
potential of the business combination with Vitesco," the
statement said.
     Several investors had voiced dissatisfaction at the
original offer. Vitesco Chief Executive Andreas Wolf also said
the price was too low.
    Monday's business combination agreement between Schaeffler
and Vitesco is an important milestone, Schaeffler boss Klaus
Rosenfeld said in a statement.
    The companies agreed to eventually merge the two groups to
create a more competitive supplier in the electric vehicle
segment, as well as simplifying the Schaeffler family's empire,
which includes stakes in Vitesco and Continental AG  CONG.DE .
    The offer period will expire on December 15. The transaction
is expected to be completed in the fourth quarter of 2024.
    Germany's billionaire Schaeffler family holds all voting
rights and 75% of shares in the namesake supplier of electric
vehicle components.
    
($1 = 0.9168 euros)

 (Reporting by Amir Orusov and Christina Amann, Editing by
Rachel More)
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