VDL-Neways courtship turns hostile

VDL Groep hasn’t given up on its ambitions to acquire Neways. Two weeks ago, the Son-based EMS specialist pulled the plug on the discussions, calling the takeover bid an undervaluation that insufficiently serves their company’s interests. VDL looked to have accepted ‘defeat’ but has now relaunched its increased public offer of 13 euros per share, in an attempt to obtain the remaining 30 percent of the shares that haven’t been tendered yet. In a composed response, Neways says that it has taken note through the media and that it will make further announcements when required.

At the end of April, VDL disclosed its plans to make a public offer on all Neways shares. After upping the proposed 12.50 euros per share to 13 euros, the Eindhoven-based industrial conglomerate said it had irrevocable commitments for 68.7 percent of the issued and outstanding capital, including its own 27.63 percent stake. The board of directors and supervisory board of Neways reviewed the proposal and concluded that it didn’t sufficiently reflect the value creation of their company, as a result of which they couldn’t support it. Two minor shareholders, Add Value Fund (5 percent) and Bernard ten Doeschot (3 percent), have also rejected the increased offer.