Buy out: Volkswagen to grab all of Scania
Volkwagen says it was making $9.19bn offer to grab nearly 40% of Swedish truck manufacturer Scania it does not own.
BERLIN:
Europe’s biggest carmaker Germany’s Volkwagen said Friday it was making a €6.7-billion ($9.19 billion) offer to grab the nearly 40% of Swedish truck manufacturer Scania it does not already own. Volkswagen currently has nearly 90% of voting shares in Scania, and owns 62.6% of the company. It is telling shareholders of the outstanding stock it is willing to pay them 200 Swedish kronor (€22.24, $36.84) per share, a premium of more than 50% that values the total offer at €6.7 billion. The buy is conditioned on Volkswagen ending up with at least 90% of Scania. If that happens, the German group will withdraw the listed Swedish firm from the Stockholm stock exchange. Volkswagen already owns German truck and bus-maker MAN. It bought into Scania in 2000. Taking full control of the Swedish company, it reckons it will make annual savings of €650 million through synergies.
Published in The Express Tribune, February 23rd, 2014.
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