Comprehensive M&A data with integrated detailed company information

ZF planning sale of Haldex stake
Posted on Thursday, 12 September 2019 13:56
German car parts maker ZF Friedrichshafen is mulling over a sale of its 20.0 per cent stake in Swedish intelligent all-wheel drive systems manufacturer Haldex.

The company said it is mulling options for the shareholding, which amounts to 8.90 million shares, as part of its planned strategic focus on the commercial brakes segment.

However, it cautioned that any deal would depend on market conditions.

It is not clear when a decision on the matter is likely to be made or how much the vendor could hope to raise from a deal.

However, based on Haldex’s closing share price of SEK 57.70 on 11th September, the last trading day prior to the announcement, a sale of the full stake can be valued at SEK 513.53 million.

The Swedish company was previously the subject of a takeover battle between ZF and Knorr-Bremse, which culminated in the latter ultimately dropping its attempt in September 2017 after the target’s board withdrew its support of the approach.

As a result, ZF is the group’s largest shareholder, with a current stake of 20.1 per cent.

With 2,300 employees across four continents, Haldex claims to be one of the world’s leading suppliers of brake and suspension technology, while it is also working on technology for electric and autonomous vehicles.

The firm has offices in 19 countries.

Haldex recorded net sales of SEK 2.73 billion in the first half of 2019, up from SEK 2.62 billion over the corresponding period of last year.

Operating income declined from SEK 188.00 million to SEK 170.00 million over the same period.

So far in 2019, motor vehicle parts manufacturers have been targeted in 575 deals worth a combined USD 29.39 billion, compared to the USD 51.99 billion injected across 992 deals in the whole of 2018.

Of those signed off this year, five broke the USD 1.00 billion-barrier, with the largest of all worth USD 7.00 billion.

Interestingly, that deal also involved ZF Friedrichshafen as the company agreed to pick up WABCO Holdings back in March of this year. Completion is slated to follow early in 2020.

© Zephus Ltd