Grammer major shareholder demands more money: Chinese offer for Grammer – in the view of the Hastors but too little

05/30/2018

Grammer major shareholder demands more money Chinese people offer for Grammer – in the opinion of the Hastors but too little

DPA

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

Chinese major shareholder Ningbo Jifeng offers € 60 per Grammer share. For the second major shareholder Cascade Investment, which is controlled by the Bosnian Hastor family, this is not enough. They expect a significant increase in supply – and consider themselves to increase their share.

The entrepreneurial family Hastor, the second major shareholder of Grammer, considers the takeover offer from China to be too low for the Bavarian automotive supplier. “We see the offer as economically inadequate,” said Cascade International Investment, one of two family-owned investment vehicles that together hold 19 percent of Grammer on Wednesday.

The fair value of the Grammer share is already at least 85 euros. After the agreed acquisition of Toledo Molding & Die (TMD) even 100 euros would be “quite realistic”. The Grammer share, which had already risen significantly the day before, subsequently raised by up to 4.5 percent to € 63.95.

“We will now examine all available options, including the further expansion of our stake,” says the statement from Cascade.

The fair value of the Grammer share amounts to “at least 85 euros”, but for Cacade “about 100 euros are to be regarded as quite realistic”. Jifeng wants to offer 61.25 euros per share – an increase of 19 percent compared to the previous market price.

Who is behind the offer?

Cascade also raised the question of who was behind the takeover offer and wanted to gain “access to key technologies at Grammer”. It is incomprehensible that a company with a turnover of 250 million euros could lift a takeover for one billion euros. Maybe the state is involved.

It is also unclear whether a takeover by Jifeng Grammers put the planned acquisition of the American plastics manufacturer Toledo on the line: “Is it likely that, for example, authorities in the US prohibit the acquisition now?”

The Chinese Ningbo Jifeng, which already holds a stake of 25.5 percent, submitted an offer for € 60 per Grammer share on Tuesday plus a dividend of € 1.25.

Cascade has always considered Grammer’s commitment to be long-term. Grammer had brought Ningbo Jifeng into the house as a “White Knight” in 2017 to prevent an unwanted takeover by the Hastor family.

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.

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.

la / dpa / Reuters

To home page