Landis+Gyr almost certain to take IPO route over direct sale of company - report
17 JUL 2017
Landis+Gyr is expected to take the route of an initial public offering over an outright sale of the company, according to a newswire report.
Reuters cited three separate sources familiar with the situation for the information. Landis+Gyr, which is 60% owned by Toshiba [TYO:6502] and 40% owned by the Innovation Network Corp of Japan (INCJ) had been pursuing preparations for the IPO while at the same time keeping the option of a direct sale on the table, the report said. However, one of the sources said that as the final two bidders have decided that they could not match the expected price of the IPO, it is likely that Toshiba will take the IPO route.
According to another source, it is 99% certain that Toshiba will go through with the IPO due to the strong demand, the report said.
Neither of the sources would divulge their identity as they did not have authorization to speak about the deal publicly, the report added.
Meanwhile, a Landis+Gyr spokesman said that a direct sale of the company remained an option.
Another source expected Landis+Gyr shares to sell in the upper third of the IPO range, which last week was set at the range of CHF 70.00-CHF 82.00 (USD 72.73-USD 83.12) per share, valuing the company at CHF 2.1bn-CHF 2.4bn, the report said.
The listing of the shares is expected to begin on 21 July, the report noted.