European private equity giant EQT has announced a cash offer to acquire Swedish components manufacturer OEM International. According to a statement, EQT has secured 72.5% of the voting rights in OEM through irrevocable commitments from major shareholders and has offered a bid of 110 kronor per share, approximately $10.26. The total valuation of this privatization deal stands at roughly 15.25 billion Swedish kronor, or about $1.4 billion, representing a 12.3% discount on OEM's closing price on Monday.
Despite the acceptance of the offer by OEM's largest shareholders, including Orvaus AB, Siv Franzen, Agne Svenberg, and AB Traction, OEM’s independent bid committee has advised shareholders against accepting the offer. The committee has argued that the financial terms of the deal are not favorable.
The major shareholders, holding approximately 26% of OEM's shares, have agreed to sell about three-quarters of their shares to EQT. EQT has stated that it plans to accelerate OEM International's acquisition activity in both existing and new markets and will pursue selective organic growth strategies to bolster the company's expansion.
The acceptance period for the acquisition offer is scheduled to start on December 19 and will conclude on February 27 of the following year.
