No deal: Neways and VDL end talks
Less than a month ago, Neways Electronics received an offer from VDL Groep B.V. to acquire all outstanding shares in the Neways’ share capital. Now the EMS provider says that any and all conversations relating to the offer have been ended.
This announcement follows a joint and unanimous conclusion by the Board of Directors and the Supervisory Board that the proposal does not sufficiently reflect the value creation of Neways. Neways had entered into talks with VDL in order to better evaluate the indicative proposal. The company states in an update that its Boards have, supported by their financial and legal advisors, carefully reviewed the present proposal by VDL, whereby the Boards have given due consideration to the interests of all stakeholders, including the other shareholders. The Boards have reviewed VDL’s proposal amongst others compared to the existing strategy for the continued success of Neways and long term value creation. After careful analysis, the Board, supported by their financial and legal advisors, have come to the conclusion that the present proposal, including the non-financial covenants, insufficiently serves the interests of Neways, its business and its stakeholders, including the other shareholders, as a result of which the Boards cannot support the proposal. In the present proposal the value development of Neways is significantly undervalued.