EQT, a private investment firm with €246bn in total assets under management, has made a SKR15.3bn (€1.3bn) take-private offer for Stockholm-listed industrial component distributor OEM International, according to a report by PE Hub.
Key OEM stakeholders have backed the offer by agreeing to sell about 75% of their shares, which equates to around 72.5% of the company’s total voting rights and approximately 25.7% of its share capital. The bid values OEM at SKR110 per share, representing a 12.3% discount from its latest closing price and a 6.6% discount from the past 30-day average.
Despite finding EQT’s offer favourable, an independent bid committee of OEM’s board of directors unanimously recommended that the company’s shareholders should reject the deal.
The bid though, does not depend on a minimum acceptance threshold, as EQT considers that the committed shares provide it with “sufficient ownership level” to proceed, even if other shareholders don’t sell, according to the report.
If the acquisition succeeds, EQT plans to leverage its expertise in mergers and acquisitions to fuel OEM’s expansion into both existing and new markets. OEM’s strong cash flow and balance sheet are expected to support this growth strategy, EQT noted in a statement.
