FRANKFURT – Daimler AG and engine manufacturer Rolls-Royce Group Plc said they now held a 60 percent stake in Tognum AG following the expiry of their tender offer for the industrial diesel engine maker.
Daimler, which already owned 28.4 percent of Tognum, and Rolls-Royce had offered 26 euros per share for the engine maker, up from an initial 24 euros a share bid, valuing it at 3.4 billion euros ($4.9 billion).
In May, the two companies clinched the takeover of Tognum after raising their offer and gaining the support of the company's board.
Tognum board members agreed to tender their combined 5 percent stake after Daimler and Rolls-Royce increased the bid by 8.3 percent to 26 euros a share, Tognum said at the time. Together with Daimler's 28.4 percent stake, this made a deal possible at the reduced acceptance threshold of 30 percent without the backing of other Tognum shareholders.
The bidding consortium said Monday it had received acceptances representing 58.35 percent of the share capital of Tognum and bought a 1.52 percent stake on the stock market.
Once the takeover has been completed, Rolls-Royce will expand its marine and diesel power business, while Daimler will re-establish closer ties with a major buyer of its truck diesel engines, which are retooled by Tognum for specialized uses.
The two hope to tap into a global market worth more than 30 billion euros a year. Tognum is the world's second-biggest manufacturer of high-speed diesel engines for the marine, energy and defense industries, after Caterpillar Inc.
Daimler and Rolls-Royce said winning control laid a strong foundation for the future co-operation of the three companies.
Daimler once owned all of Tognum, then called MTU Friedrichshafen, but then sold it for 1.6 billion euros to Stockholm-based private equity firm EQT Partners in March 2006 to help pay for reorganizing Chrysler, when it still owned the U.S. carmaker.
After Tognum's IPO at 24 euros a share, Daimler bought a 22 percent stake for 585 million euros in April 2008, raising the holding to more than 25 percent three months later.
Sources: Reuters and Bloomberg