Austria-based lifting solutions provider Palfinger AG intends to make a takeover bid for all of the shares in Norwegian Bergen-headquartered TTS Group ASA via its subsidiary Palfinger Marine GmbH.
For every share traded on the Oslo Stock Exchange, a cash amount of NOK 5.60 would be offered, Palfinger said. Subject to a positive outcome of the due diligence audit, the offer would be made in agreement with the Board of Directors of TTS, and TTS would recommend its shareholders to accept the offer.
“Together with the acquisition of Harding, this acquisition would place PALFINGER MARINE among the global top three ship equipment suppliers. In the future, we want to be a one-stop shop, internationally offering all maritime customer industries competitive products and services. With a staff of approximately 3,000 employees in 22 countries and revenue of more than EUR 600 million, PALFINGER MARINE would contribute around one-third to the revenue of the PALFINGER Group from 2017 onwards, hence becoming the PALFINGER Group’s strong second mainstay,” said Herbert Ortner, CEO of Palfinger AG.
The intended acquisition is expected to be finalized in the fourth quarter this year, but latest in January 2017. The offer, which will be made in accordance with the Norwegian Stock Exchange Act, also has the support of approximately 67 per cent of the shareholders. The offer will become effective subject to the approval of 90 per cent of the shareholders. We plan to make and disclose the formal offer document four weeks from now. The offer period will end four weeks after disclosure. Palfinger plans to finance this acquisition via a package of financing products, primarily including term loans, hybrid capital and the issue of promissory note loans.
The TTS Group has global operations with a focus on the design, development and supply of equipment solutions and services for the marine and offshore energy industries.
“TTS has clear ambition to grow through the development of a wider range of products and product packages within the deck- and cargo handling equipment to the various vessel segments. Joining Palfinger Marine, and potentially also Harding, will give large synergies and create a solid platform for the planned growth,” said Toril Eidesvik, CEO of TTS Group.