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TE Connectivity makes an offer for First Sensor

First Sensor says that it has signed a business combination agreement with TE Connectivity which outlines key points to significantly strengthen their combined position in the market of sensor technology.

Following the signing, TE Connectivity announced its decision to make a voluntary public tender offer with a cash consideration of EUR 28.25 per share, representing a premium of 14.6% to the closing price as of 24 May 2019, the last trading day before the company confirmed the existence of negotiations with TE Connectivity. The transaction, including the assumption of First Sensor’s outstanding net debt and minority interest, is valued at approximately EUR 307 million, a press release reads. The transaction with TE allows First Sensor to become part of a global technology and manufacturing player for connectivity and sensor solutions and provides the scale, customer base and existing sensor expertise to create a more comprehensive offering. First Sensor will extend TE’s sensors product range and will add application solutions in key growth markets, particularly in Industrial, Medical and Mobility. A subsidiary of Deutsche Private Equity (holding about 40% of First Sensor shares), funds managed by Teslin Capital Management (holding about 13%) and other shareholders together holding about 14% of First Sensor shares have irrevocably agreed to tender their shares into the offer. That is in total about 67% of all First Sensor shares outstanding. The tender offer will have no minimum acceptance threshold but will be subject to receipt of necessary antitrust and other regulatory clearances. “With regard to our business model and product portfolio, a combination of First Sensor’s and TE’s businesses offers a strategic advantage and significantly furthers the business opportunities for both companies. The value and the growth prospects of our attractive technology portfolio and application solutions in the Industrial, Medical and Mobility target markets, are reflected in the current offer,” says Dr. Dirk Rothweiler, CEO of First Sensor AG, in the release. “At the same time the transaction is a clear opportunity for growth for First Sensor’s workforce." The transaction is expected to close by mid 2020 at the latest. The CEO of First Sensor, Dr. Dirk Rothweiler, intends to continue his position in the company after completion of the takeover offer.

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March 28 2024 10:16 am V22.4.20-2
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