ZF Raises Offer To Acquire Haldex
By Mike Brezonick14 September 2016
ZF announced that it has increased the price per share in its public cash offer for Haldex Aktiebolag to SEK 110 (approximately US$12.94), valuing Haldex at SEK 4.85 billion (US$564 million). ZF said it has received agreements to sell from key stakeholders, including Göran Carlson, chairman of the Haldex board, as well as from two major Swedish institutional investors representing more than 17% of Haldex’s share capital. Combined with the 4.18% held by ZF, this equates to a combined shareholding of over 21% of Haldex’s total share capital.
The Haldex board has unanimously expressed its strong support for ZF's offer and urges its shareholders to accept it. This is in spite of the fact that shortly after ZF’s made its original bid, German conglomerate Knorr Bremse AG made an SEK 4.86 (US$570 million) bid to buy Haldex. A third suitor, Germany’s SAF-Holland SA, started the activity with an unsolicited offer for Haldex in July. It withdrew after ZF made its original offer.
“The increased offer from ZF provides the shareholders of Haldex with greater deal certainty than Knorr-Bremse’s offer and is likely to close significantly faster,” said Magnus Johansson, member and acting board chairman at Haldex.
ZF said a combination between it and Haldex offers unique opportunities for both companies to leverage their respective expertise and increase their value to customers and the market. ZF will invest in and expand Haldex’s product offering, driving innovation for commercial vehicles in the field of drivetrain and chassis, including brake and air suspension solutions to address future megatrends in mobility as outlined in ZF’s Strategy 2025.
“We have carefully considered our offer and continue to believe that ZF’s strategy and portfolio are excellently and fully complemented by Haldex’s focus on braking and air suspension systems,” said Dr Stefan Sommer, chief executive officer of ZF. “Together with the management of Haldex, ZF will continue to develop and expand Haldex’s market position. The increased offer reflects this potential we see in the combination of our business.”