Danfoss Taking Control of Sauer-Danfoss

On Friday, Danish industrialist Danfoss A/S announced that it is buying the 24.4% portion of Sauer-Danfoss shares it does not currently own for $58.50 per share, cash. Additionally, before the merger takes place, Sauer-Danfoss shareholders will be paid one final cash dividend of $0.35 per share, payable on March 29.

Danfoss will commence a tender offer within the next 10 business days, inviting Sauer-Danfoss shareholders to tender their shares for payment. Assuming a majority of the owners of the outstanding 24.4% of shares Danfoss does not own do, in fact, tender their shares, and Danfoss winds up with at least a 90% interest in its subsidiary in consequence, then Danfoss will make use of a provision of Danish corporate law to force any shareholders of the remaining, untendered shares to accept a buyout at the $58.50 price.

This transaction is expected to close sometime in Q2 2013.


Shares of Sauer-Danfoss closed up 8.5% Friday on the news, at $58.73, a small discount to the value of the tender offer-plus-expected dividend payout.

The article Danfoss Taking Control of Sauer-Danfoss originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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