13th Jun 2016 13:31
LONDON (Alliance News) - Engineering software company AVEVA Group PLC on Monday confirmed it has received a revised, conditional proposal from French industrials group Schneider Electric SA, after a previous deal between the two collapsed in December last year.
AVEVA said it has received a conditional proposal from Schneider to combine AVEVA with Schneider's software business in exchange for new AVEVA shares to be issued to Schneider Electric. It said that, similar to the previous discussions, the proposal also includes a "significant cash payment", which would be distributed to AVEVA's current shareholders upon completion.
The proposed transaction would constitute a reverse takeover, and if consummated would result in Schneider Electric owning a majority stake in the enlarged AVEVA, which is intended to remain listed on the London Stock Exchange.
As such, AVEVA's shares have been suspended from trading, and will recommence at either the publication of updated financial information on Schneider 's software business, or a confirmation from AVEVA it is not proceeding.
AVEVA said it is currently in preliminary discussions with Schneider on "merits of such a transaction and its terms", but noted there can be "no certainty" the talks will lead to any agreement on a deal or the timing or terms of any such deal.
Before they were suspended, shares in AVEVA were leading the FTSE 250, up 9.9% at 1,858.00 pence following a report from the Financial Times on the potential deal. Schneider Electric shares were down 2.1% at EUR54.07 in Paris.
AVEVA and Schneider had agreed a reverse takeover of AVEVA in July of last year. However the deal was terminated in December as a result of "significant integration challenges" which were uncovered during the due diligence process. As a result, the pair were unable to reach a definitive agreement and called the deal off. As it had been non-binding, neither was required to pay a break fee as a result.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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