In case you had not already heard, Rolls-Royce and Daimler are taking over Tognum. On 6th June 58.35% of Tognum shareholders had accepted the offer from Daimler and Rolls-Royce.
Daimler and Rolls-Royce now control a total of 59.87% of Tognum through their joint venture called Engine Holding GmbH.
The final acceptance of shares is due to close on Monday 20th June and it is expected that sufficicent shares will be tendered to finalise the deal.
Terms of the Offer
Daimler and Rolls-Royce offered Tognum shareholders EUR26 per share tendered. Very soon after this offer the Supervisory and Management Boards of Tognum AG accepted the offer.
Tognum is a Mechanical engineering company which controls several divisions of DaimlerChrysler and was originally set up by a private equity fund called EQT IV. Tognum has been trading on the Frankfurt exchange since 2007, however, EQT sold out its 22.3% stake to Daimler in 2008. Daimler had increased their shareholding in Tognum to 28% prior to the takeover bid.
Tognum’s CEO was very optimistic of the takeover, stating:
“Together with the two companies, we further strengthen our technological leadership in propulsion systems and distributed energy systems and develop our company into a platform for growth”
Engine Holding GmbH
Engine Holding is a joint venture by Daimler and Rolls-Royce. The acquisition of Tognum will allow Rolls-Royce to develop its marine and diesel power activities while Daimler is likely to focus on developing its relationship with its major clients who currently order modified Daimler diesel engines from Tognum for a variety of specialist roles.