21st Sep 2022 08:39
(Alliance News) - Aveva PLC on Wednesday agreed to a takeover offer from majority owner Schneider Electric SE, under which the French energy management company will acquire the remaining stake in the Cambridge, England-based industrial software firm it does not own.
Paris-based Schneider currently owns a 59% stake, and will acquire the remaining 41% stake in Aveva at a price of 3,100 pence per share in cash, valuing Aveva's total equity at GBP9.48 billion, and implying an enterprise value of GBP10.15 billion.
The price reflects a 1.7% premium compared to Aveva's closing price of 3,048p on Tuesday, and 42% compared to the closing price of 2,192p on August 23, the day before Schneider had confirmed it was considering making a takeover offer.
Shares in Aveva were up 2.3% at 3,116.55 pence on Wednesday morning in London. Schneider Electric's shares were 1.5% lower at EUR114.28 in Paris.
Schneider Electric had been considering a full takeover of Aveva since late August. Schneider has held a majority stake in Aveva since 2018, when the Aveva had merged with Schneider's own software business.
Schneider last year seconded one of its executives, Peter Herweck, to be chief executive officer of Aveva.
The acquisition is conditional on gaining at least 75% shareholder approval at both court and general meetings, which are expected to take place in mid-November, as well as regulatory approval from the UK, Germany, Denmark and France.
Also, the acquisition must be sanctioned by the High Court of Justice in England & Wales.
The acquisition is expected to be completed in the first quarter of 2023, and has a long-stop date of September 21, 2023.
"Aveva has been on a remarkable journey, undergoing significant transformation and growth - most recently through the combination with Schneider Electric Software and the acquisition of OSIsoft - generating substantial shareholder value and creating a world leader in its field," said Chair Philip Aiken.
"Given the intentions of Schneider Electric to retain AVEVA's agnostic business model, standalone global operations, and headquarters in Cambridge, and to accelerate investments in R&D and the SaaS transition, the AVEVA Independent Committee believes that AVEVA will continue to play a key role in engineering and industrial software innovation both in the UK and globally. Customers are increasingly turning to industrial software to find greater efficiency and sustainability, and the combination with Schneider Electric will enable AVEVA to execute its strategy faster and further enhance its customer proposition," Aiken added.
By Dayo Laniyan; [email protected]
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