3rd Apr 2024 11:14
(Alliance News) - Renishaw PLC remains a "prime takeover candidate" despite Siemens AG ruling itself out of bidding for the firm, according to Russ Mould of AJ Bell.
After the London market close on Tuesday, Siemens said it did "not intend to make an offer for Renishaw." The Munich-based technology conglomerate was responding to media reports.
Shares in Renishaw fell 3.5% to 4,200.00 pence each in London on Wednesday. Siemens marginally to EUR175.58 each in Frankfurt.
AJ Bell investment director Russ Mould said that while Siemens "may have poured cold water on speculation that it wants to buy precision engineer Renishaw, the latter still remains a prime takeover candidate."
"Renishaw ticks the right boxes to be a bid target. It has specialist skills and a long track record of generating value for stakeholders. Its fortunes are heavily tied to the semiconductor industry where the prospects are improving after a year of oversupply."
"Furthermore, 52.8% of the company is owned by Renishaw’s co-founders David McMurtry and John Deer, both of whom are in their 80s and want to sell down their positions."
"Three years ago, they put the company up for sale on the condition they would only sell to someone who respected the heritage and culture of the business. Reports suggested there were plenty of interested parties but keeping things ‘the Renishaw way’ might have been a hurdle that many didn’t want to clear. Perhaps there needs to be a degree of flexibility on this front if they want a deal to succeed," Mould suggested.
By Jeremy Cutler, Alliance News reporter
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