VDL sees Neways hook up with investment firm

Neways has announced that it has reached a conditional agreement with Enschede-based investment firm Infestos on a recommended public offer for all of the issued and outstanding ordinary shares. Amounting to an aggregate equity value of approximately 177.5 million euros, the price per share of 14.55 euros in cash represents a premium of 33.5 percent over the closing price of the EMS specialist from Son on 29 April 2021. It looks like it’s game over for VDL, as the new bid not only trumps the industrial conglomerate’s improved offer of 13 euros but also carries the full support of Neways’ management board and supervisory board.

The fireworks started at the end of April when 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 family-owned Eindhoven business said it had irrevocable commitments for 68.70 percent of the issued and outstanding capital, including its own 27.63 percent stake. The Neways boards 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), also rejected the increased offer.