Swedish private equity firm EQT AB has received the support of key shareholders to acquire Swedish automation system manufacturer OEM International AB. This is reported in the EQT press release.
The main OEM owners, including Orvaus AB, Siv Franzen, Agne Svenberg and AB Traction, have agreed to sell three quarters of the assets, including shares of A.
The total value of the transaction is 15.25 billion kronor ($647 million) at a price of $10.26 per share (12.3% lower than the closing price on November 4, 2024).
According to Swedish law, if EQT wins 90% of the votes, it will have the right to exclude OEM from the listing, forcing the remaining shareholders to sell their shares. If the number of votes is below the established threshold, the private investment company may remain the majority owner of the company registered on the stock exchange.
Although the largest OEM shareholders agreed to the proposal, the independent OEM tender committee recommended that the remaining shareholders refrain from approving the transaction, since the proposal does not take into account the real value of the company.
The application period is set from December 19, 2024 to February 27, 2025.
EQT is a Swedish investment organization focused on promising assets in various sectors. The company offers investment services, including direct investments, real assets and venture capital, aimed at business growth in the healthcare, clean energy, corporate and industrial technology sectors. The headquarters is located in Stockholm (Sweden).
OEM International is engaged in the production of industrial components and systems for industrial automation. The company manages enterprises for the import and sale of electronic and electromechanical components and systems for industrial automatic equipment. The headquarters is located in Tranos (Sweden).
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