Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance Find Stocks Now
Volkswagen sees Europcar deal as attractive, quashes hopes for higher bid
Published Nov 26, 2021 05:53AM ET
© Reuters. FILE PHOTO: A new logo of German carmaker Volkswagen is unveiled at the VW headquarters in Wolfsburg, Germany September 9, 2019. REUTERS/Fabian Bimmer
FRANKFURT (Reuters) - Volkswagen (DE:VOWG_p) is convinced that its 2.9 billion euro ($3.3 billion) offer for France's Europcar, made as part of a consortium, fairly reflects the firm's value, a senior executive said, pouring cold water on hopes for a higher bid.
"With a takeover premium of 30-40%, depending on the reference point, we have presented a very attractive offer," Christian Dahlheim, Volkswagen's head of group sales and one of the main architects of the deal, told Reuters.
Volkswagen, along with asset manager Attestor Limited and Dutch mobility group Pon Holdings BV, is offering 0.50 euro per share in Europcar, which could be topped up by 0.01 euro per share if 90% of shareholders take up the bid.
Shares in Europcar currently trade at 0.508 euros apiece.
Under the offer, first announced in July and launched on Friday, Europcar investors have at least until Dec. 30 to tender their shares.
Investors representing 68% of Europcar's shares have already agreed to tender their stock, which would give the consortium control over the car rental group under French takeover laws.
"We will enter the mobility sector in the short-term. The acquisition of Europcar is clearly our preferred option," Dahlheim said.
The consortium, Green Mobility Holding, is still targeting a squeeze-out to faster implement its strategic plans for the company, he said.
It plans to capitalise on Europcar's vast international network in more than 140 countries, including a fleet of around 350,000 vehicles, as a way to sell lucrative mobility services.
"We are buying Europcar because we believe that we can develop it towards a good basis for an expanded mobility offer," Dahlheim said, adding he expected European antitrust authorities to approve the transaction at the beginning of next year.
Investments for future growth will be funded from Europcar's cash flows, Dahlheim said.
($1 = 0.8897 euros)
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.