EP Global launches new takeover bid for Germany’s Metro retail group
Offer represents a premium of about 2% over Friday’s closing share price
Czech billionaire Daniel Kretinsky wants to lift his stake in German wholesaler Metro AG to above 30 per cent and is preparing an offer to buy out the company's remaining shareholders.
After a failed takeover attempt last year, Mr Kretinsky’s holding company EP Global Commerce currently has a stake of just under 30 per cent which it now wants to increase further. Crossing that threshold under German law requires an offer to buy out all other shareholders.
On Sunday night, EPGC announced that it will table a bid for all Metro shares that it does not already own and that will be in line with the regulatory minimum demanded under German law.
The offer, which will be €8.48 for each Metro voting share and €8.87 for the non-voting stock, will represent only a small premium of around 2 per cent on Metro’s closing price of €8.32 on Friday and is well below the €16 that was offered last year. Back then, Mr Kretinsky failed to win over enough shareholders.
Last year, Metro warned its shareholders that the takeover offer would “burden” the company with too much debt as it urged shareholders to reject the bid.
The new offer will come without a minimum acceptance threshold. EPGC said that it “does not expect to hold more than 50 per cent of the voting rights following settlement of the takeover offer”, adding that the move is intended to give EPGC “more flexibility in the future”.
The investor will be able to increase its stake further without having to table a mandatory takeover offer to other shareholders.
Metro is currently looking for a new chief executive after longstanding CEO Olaf Koch last month said that he will leave the company by the end of this year, more than one year before his contract will expire.