German truck company ZF has announced a public offer for Haldex, a Swedish supplier of brake products and air suspension systems for commercial vehicles. ZF will offer SEK (Swedish kronor) 100.00 per Haldex share in cash, valuing Haldex at SEK 4.4 billion (approximately $516 million U.S.). ZF has obtained an undertaking to accept the offer from Göran Carlson, the chairman of the board of directors of Haldex, being the largest shareholder of Haldex representing 5.7% of the total number of shares and votes in Haldex. The offer has been unanimously recommended by Haldex’s board of directors.
With Haldex’s brake systems for commercial vehicles, ZF says it would be able to cover the whole functional chain of commercial vehicles in line with “See-Think-Act” (the aim of ZF’s technology is to enable vehicles to see, think, and act autonomously) and transfer fuel efficiency, autonomous driving and safety systems technologies known from passenger cars to commercial vehicles.
“We believe that our businesses are truly complementary and that a combination will offer unique value for all stakeholders,” said Dr. Stefan Sommer, chief executive officer of ZF. “We are confident that we will be able to continue to develop Haldex’s market position under ZF ownership, thanks to ZF’s technological leadership, global reach and customer access, combined with Haldex’s technological competence, management skills and employees.”
“The offer provides Haldex shareholders with an opportunity to realize value from their investment immediately at both high multiples and significant premium to recently traded prices of Haldex’s shares as well as a premium to the SAF-Holland offer,” said Magnus Johansson spokesperson and member of the board of Haldex.
The offer is conditional, among other things, upon being accepted by Haldex’s shareholders to an extent that ZF becomes the owner of more than 90% of the outstanding shares in Haldex. The announced transaction is further subject to approval from competition authorities. ZF will file the transaction with relevant authorities shortly.