Cleveland, Ohio – The Japanese portion of machine tool company DMG Mori Seiki has bid as much as $1.9 billion to take over the German half of the combined company.
DMG Mori Seiki Co. Ltd.’s bid for DMG More Seiki AG represents about a 7.5% premium on the German company’s stock price from Wednesday’s close. The Japanese side of the company currently owns 24% of the company, and it has made its tender bid for at least 50% of the combined company. Getting enough stock to cross the 50% mark would cost $633 million, based on the offer. Gaining all German shares would cost $1.9 billion.
The offer is set to begin Feb. 11, 2015, and run through March 11, 2015. The Japanese portion of the company expects to announce a settlement of the issue by June.
The German portion of DMG Mori Seiki says it will respond to the tender offer after all documents have been filed with German financial regulators.
Germany’s DMG merged with Mori Seiki in 2009.
In its filings, executives with the Japanese portion of the machine tool company say, “The business collaboration between CO (the Japanese portion of the company) and AG (the German side) has brought more success than was expected at the time of the start of their collaboration. (We) have come to the conclusion that in order to further create corporate value, it will be the best solution that they are operated together in an integrated manner.”
Source: DMG Mori Seiki