KKR’s Accell Group takeover remains with hurdles

The proposed takeover of the Accell Group by investment giant KKR has seen a majority of shareholders vote to accept the terms of the offer, but a key threshold remains uncrossed ahead of the June 3rd deadline.

Worth €1.56 billion, an extraordinary general meeting was required to make progress on an uncertain phase where, earlier this month, the manufacturer outlined to stakeholders that it may not accept the offer if less than 80% of the shares were eventually owned by KKR.

According to financial media in Holland, there were 5 million votes against acceptance of the offer and 800,000 who abstained, representing nearly 20% of shares in issue. Reaching the 80% threshold is critical to KKR’s honouring of the offer, according to Financieel Dagblad.

Last week’s meeting concluded with resolutions that outlined the only way forwards. “The Acceptance Threshold is – consistent with the terms of the Offer Memorandum – reduced to 80% of the Shares on a Fully Diluted basis,” read a statement issued post EGM.

Shareholders unwilling to take the premium offer believe that the price does not reflect future growth prospects of the Dutch cycling giant and its brands.

For shareholders, the acceptance period will now expire on June 3rd at 17.40 CEST. This can be handled via the financial intermediary and detailed information about the process can be viewed here. The Accell Group board are recommending shareholders accept the offer, believing it to deliver value in an increasingly uncertain and volatile market.

The buyout offer equates to €58 per share and is a 26% premium on the closing price of January 21st, the final trading day prior to the announcement. Better still, it is a 42% premium on the volume-weighted average of the past three months prior to the announcement. It is also 21% of the share’s all time high.

The meeting saw the appointment of three supervisory directors -Messrs. Knottenbelt, Lewis-Oakes and Van Beuningen.