What makes major shareholder Hastor ?: Chinese are officially reaching auto supplier Grammer

05/29/2018

What makes major shareholder Hastor? Chinese Ningbo Jifeng wants auto supplier Grammer entirely

DPA

Production of car seats at car supplier Grammer in Kümmersbruck (Bavaria)

Automotive supplier Grammer is about to be taken over by Chinese major shareholder Ningbo Jifeng. The Chinese have now officially submitted an offer to Grammer that the SDax company valued at 772 million euros. Whether it is accepted is open. For the Bosnian Hastor family holds a good 19 percent of Grammer – and had once tried to take power.

The Bavarian automotive supplier Grammer is about to sell China, The manufacturer of center consoles, armrests, headrests and truck seats wants to be taken over by the owner family of its Chinese partner and major shareholder Ningbo Jifeng. The Wang family, which Jifeng founded in 1996, offers Grammer shareholders EUR 61.25 per share, including the promised dividend of EUR 1.25 for 2017, like Grammer Show stock market chart announced on Tuesday.

The Chinese are aiming for a majority stake of more than 50 percent, but do not want to conclude a domination agreement with Grammer. The Wang family said the acquisition was also an opportunity for the 13,000 Grammer employees. She will not push for job cuts.

Jifeng had been brought on board by Grammer over a year ago, to ward off the unwanted major shareholder Hastor, Jifeng holds 25.5 percent of the company from Amberg in the Upper Palatinate and now wants to increase to at least 50 percent. The Chinese offer employment guarantees to the roughly 13,000 Grammer employees over seven and a half years, two people familiar with the plans told Reuters.

Grammer and its Chinese partners have now signed an investor agreement that governs the foundations and terms of the strategic partnership. The aim is to deepen the strategic partnership that has been in place since 2017, to stabilize the shareholder structure and to establish a global growth strategy.

However, the shareholders are counting on the takeover to come about. The in the small value index SDax Show stock market chart listed share Show stock market chart shot up 20 percent to 61.60 euros and was thus slightly above the 61.25 euros that Jifeng offers including the planned dividend of 1.25 euros for 2017.

Grammer wants to prevent the expansion of Hastor by any means

For the family Hastor, the owner of the automotive supplier Prevent, offer the offer a good way to exit, wrote DZ Bank analyst Michael Punzet. The Bonian-born Hastors had built a stake of 19 percent in 2016, but had failed with the attempt to overthrow CEO Hartmut Müller. At that time, the Grammer share was between 27 and 36 euros.

Prevent lies with several German car makers, above all Volkswagen Show stock market chart, in the clinch. Grammer had reported that several manufacturers had hesitated with orders after the entry of Hastors. After a takeover by Jifeng order intake could normalize again, wrote analyst Punzet.

Also read: The decline of the supplier-rebel Prevent

In addition to mechanical engineering, the automotive supply industry is one of the sectors that Chinese companies in Germany prefer to target. Above all about the billions takeover of the robot manufacturer Kuka Show stock market chart had been controversial. Chancellor Angela Merkel had recently insisted on equal rights for German companies in acquisitions in China during their visit to China. So far, they are mostly dependent on joint projects with Chinese partners.

Takeover by Jifeng should pass easily

Joining Jifeng Grammer The federal government has already waved through, so that the Chinese expect no hurdles in a takeover. Jifeng speculated from the beginning on a larger share, said one of the insiders. Only now, the company controlled by the Wang family, which is smaller than Grammer, has secured the financing of the takeover. Including debt, the Chinese, with whom Grammer had already worked before the entry, would have to finance more than one billion euros.

Just a week ago, Grammer had embarked on the biggest takeover of his story in order to gain a stronger foothold in US automakers: the € 233 million purchase of plastics specialist Toledo Molding & Die (TMD) from the US state of Ohio be financed with loans.

rei / mg / wed / Reuters

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