Business · Companies · 2 hrs ago
Tata needs more Iveco shareholders to back its €3.9bn takeover
Tata Motors needs more Iveco shareholders to back its €3.9 billion takeover of the Italian truck maker.
To take full control and delist Iveco, Tata needs support from holders of 80% of its shares.
At a special meeting, holders of 52.9% of Iveco’s shares backed deal-related resolutions, while 11.6% opposed them and 35.5% did not vote.
Tata must persuade some shareholders who stayed away to tender their shares, assuming those who voted against do not accept the offer.
By 19 October, shareholders had tendered 31.19% of Iveco’s shares, around three percentage points more than before Tata raised its offer price to €14.40 a share.
The offer closes on 26 October, leaving little time to reach the threshold.
If Tata reaches 66.67% but falls short of 80%, it could still complete the purchase of shares tendered, but would not be able to delist Iveco or carry out its planned restructuring.
Tata Motors needs more Iveco shareholders to accept its €3.9 billion takeover offer to reach the 80% threshold required to take full control and delist the Italian truck maker.
By 19 October, shareholders had tendered 31.19% of Iveco’s shares, about 3 percentage points more than before Tata raised its offer price.
About 35.5% of Iveco’s common shares were held by shareholders who did not vote at the special meeting, while holders of 11.6% voted against deal-related resolutions.
Tata raised its offer from €14.10 to €14.40 per share on 9 October, but opposition to the deal remained.
The offer closes on 26 October, and falling short of 80% could leave Iveco listed with minority shareholders.
- Who
- Tata Motors is seeking support from Iveco shareholders for its takeover offer.
- What
- Tata needs 80% shareholder acceptance to take full control of Iveco and delist it.
- When
- The offer closes on 26 October. The article reports tender figures as of 19 October.
- Where
- Iveco is headquartered in Turin, Italy, and its parent is incorporated in the Netherlands.
- Why
- Tata wants to complete the acquisition, take full control of Iveco and delist the company.
Tata Motors
Iveco minority shareholders opposing the deal
Offer and takeover
Tata Motors
Tata says the offer price is fair and is confident it can reach the required shareholder threshold.
Iveco minority shareholders opposing the deal
Some minority shareholders voted against resolutions linked to the proposed takeover.
Control of Iveco
Tata Motors
Tata needs 80% acceptance to take full control and delist Iveco.
Iveco minority shareholders opposing the deal
Shareholders who do not tender their shares could prevent Tata from reaching that threshold.
Tata Motors announced plans to acquire Iveco’s commercial vehicle business for about €3.8 billion and said it aimed to buy all its shares and delist the company.
Tata raised its offer from €14.10 to €14.40 per share.
Shareholders had tendered 31.19% of Iveco’s shares.
Tata’s takeover offer is due to close.
- Offer value
- €3.9 billion
- Acceptance threshold
- 80% of current shareholders
- Shares tendered
- 31.19% by 19 October
- Offer price
- €14.40 per share, raised from €14.10 on 9 October
- Offer deadline
- 26 October
- Shareholders who did not vote
- Holders of about 35.5% of Iveco’s common shares
What people are saying
A large percentage of voting happens in the last 48 hours, so the company is confident of securing the shareholders and reaching the required threshold.
The current share price of Iveco is trading below the offer price, so the price is fair.