Scania evaluates VW takeover offer

Scania is considering Volkswagen Aktiengesellschaft’s public takeover offer to the shareholders in Scania. The deal would see all of their shares in Scania tendered to Volkswagen (VW) for a cash consideration of £18.34/SEK200 per share. VW is already a key stakeholder in the Swedish CV manufacturer, owning 62.6%. VW recently reported achieving an operating profit of £9.66bn/€11.7bn for 2013, a rise from the previous year’s £9.49bn/€11.5bn. VW’s shares initially fell around 5% following the offer with press reports suggesting a sustained drop of nearly 3% reflecting both the offer and a disappointing outlook for 2014.

In response to the offer, Scania has decided to appoint an independent committee to evaluate it and to take such resolutions as are necessary. The committee consists of the board members Åsa Thunman (Chairman), Peter Wallenberg Jr, Peter Abele, Johan Järvklo and Håkan Thurfjell. The group will announce its opinion of the offer, including the reasons for the opinion, as well as valuation opinions from independent experts, no later than two weeks before the expiry of the acceptance period. The independent committee has appointed advisers of its own for legal, financial and communication issues, with Deutsche Bank and Morgan Stanley retained as financial advisors. Mannheimer Swartling has been retained as legal advisor and JKL as communication advisor. It recommends all shareholders not to take a final decision until all relevant information is available.

Peter Wallenberg Jr. said, ‘The Committee will now assess the information that is included in the offer. It has noted that Volkswagen does not foresee any significant changes with regards to Scania and that Scania’s headquarters and its development centres will remain where they are today. These matters are of course of importance to the company and for Sweden.’

At the time of going to press, there were no dates set for further communication or publication of information from the Committee.