The French energy multinational Total and Saft announced today that, following the signature of an agreement between the companies, Total filed a friendly tender offer on all of the issued and outstanding shares in the capital of Saft with the French Financial Markets Authority.
The proposed offer is subject to review by the AMF, which will evaluate its compliance with applicable laws and regulations.
An strategical purchase
“The combination of Saft and Total will enable Saft to become the Group’s spearhead in electricity storage”, said Patrick Pouyanné, Chairman and CEO of Total. “The acquisition of Saft is part of Total’s ambition to accelerate its development in the fields of renewable energy and electricity, initiated in 2011 with the acquisition of SunPower. Saft’s renowned technological know-how and unique expertise have allowed it to develop innovative and competitive solutions for its clients. It will notably allow us to complement our portfolio with electricity storage solutions, a key component of the future growth of renewable energy. This transaction will also enable Saft, its management and employees to benefit from Total’s technical, industrial, commercial and financial support. In addition, this transaction will enable Saft to successfully accelerate its development.”
Saft is a world leading designer and manufacturer of advanced technology batteries for industry.
The Group is the world’s leading manufacturer of nickel batteries and primary lithium batteries for the industrial infrastructure and processes, transportation and civil and military electronics markets. Saft is the world leader in space and defense batteries with its Li-ion technologies which are also deployed in the energy storage, transportation and telecommunication network markets.
Saft employs over 4,100 people in 19 countries, and operates 14 manufacturing sites as well as an extensive sales network.
€950 million purhcase with a 38.3% premium against Saft’s share value on May 6th
The proposed offer will target all of Saft’s issued and outstanding shares at a price of €36.50 per share, ex-dividend of €0.85 per share, valuing Saft’s equity at €950 million.
The offer price represents a 38.3% premium above Saft’s closing share price of €26.40 on May 6, 2016, a premium of 41.9% above the volume weighted average share price over the past six months and a premium of 24.2% above the volume weighted average share price over the past year.
The offer values the company at nine times its 2015 reported EBITDA, which represents a significant control premium compared to recent valuation multiples in the battery industry.
The Supervisory Board of Saft has unanimously approved the friendly takeover and will recommend its shareholders to tender their titles, as the operation is considered to be in line with interests of the company, its shareholders and its employees.
“We are delighted with this rapprochement, which was unanimously approved by the Supervisory Board thanks to its strong industrial rationale and its financial interest for our shareholders,” said Yann Duchesne, Chairman of Saft’s Supervisory Board.
Ghislain Lescuyer, Saft’s CEO, commented, “I am convinced that Total will provide Saft with the required expertise and resources needed for its future development, particularly in terms of technological and commercial capabilities. This transaction will benefit Saft’s clients and employees, who will be joining a major player in the energy space.”
Image over the headline.- Total ad campaign 2016. © Total.
