On the 9th of October, Schaeffler announced its plans to launch a public purchase offer for all the outstanding shares of Vitesco Technologies. This follows Schaeffler becoming Vitesco’s largest shareholder last year, increasing its stake to 49.99%. Schaeffler has said the purchase offer is the first step of three that may lead to an eventual merger. The company intends to incorporate Vitesco into its e-mobility division, in a bid to become a market leader in that industry.

The Public Tender Offer

Vitesco shareholders will be offered EUR91 (USD96) cash per share. This is a 21% premium on the closing price from the 6th of October, or a 52% premium on initial IPO price of EUR59.80 (USD63.32) in September 2021. Alternatively, they can wait until the proposed merger and exchange their shares for newly issued Schaeffler shares. From this they will be able to benefit from the expected synergy and value creation. The financing package of the offer is fully underwritten by Bank of America, BNP Paribas, and Citigroup,

It is expected the tender offer will be published on the…

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