(Reuters) – German automotive supplier Schaeffler AG said on Monday it has increased its offer price in a voluntary public tender offer for Vitesco Technologies shares.
Schaeffler decided to increase the offer price to 94 euros ($102.53) from a previous 91 euros per share, the family-controlled company said in a statement.
“The decision was made after careful consideration of the prevailing market sentiment, and underscores Schaeffler’s confidence in the significant synergies and the value creation potential of the business combination with Vitesco,” the statement said.
Several investors had voiced dissatisfaction at the original offer.
Vitesco Chief Executive Andreas Wolf also said the price was too low.
Monday’s business combination agreement between Schaeffler and Vitesco is an important milestone, Schaeffler boss Klaus Rosenfeld said in a statement.
The companies agreed to eventually merge the two groups to create a more competitive supplier in the electric vehicle segment, as well as simplifying the Schaeffler family’s empire, which includes stakes in Vitesco and Continental AG.
The offer period will expire on December 15.
The transaction is expected to be completed in the fourth quarter of 2024.
Germany’s billionaire Schaeffler family holds all voting rights and 75% of shares in the namesake supplier of electric vehicle components.
($1 = 0.9168 euros)
(Reporting by Amir Orusov and Christina Amann, Editing by Rachel More)
