Faurecia says new Hella squeeze-out offer not on agenda for now

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FILE PHOTO: The logo of French car parts supplier Faurecia is seen during the company’s investor day in Paris, France April 19, 2016. Businesshala/Charles Plateau/File photo
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PARIS (Businesshala) – French car parts maker Forcia does not plan at this stage to make a new offering to minority shareholders in German takeover target Hella, a spokesman said on Tuesday, after activist fund Elliot acquired a 6.6% voting stake in Hella. constructed.

Separately, Faurecia said in a statement that it will own 79.5% of Lighting Group Hella’s shares after the takeover offer for its outstanding shares expires on November 11 — below the 90% threshold the company would need to delist.

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News of Elliott’s stake-building, which emerged in a regulatory filing on Monday, suggested the Paul Singer-led fund may bet on Foracea, launching a better offering to squeeze remaining shareholders.

“It is not on the agenda at this stage,” a Foresia spokesperson said by email asking whether the company would launch such an offer.

“We are satisfied with the outcome (of the offer expiring on November 11), which allows us to proceed further in the transaction, particularly with regard to the implementation of the synergies,” he said.

Elliott declined to comment.

Faurecia won a bidding battle to take control of Hella in August, after striking a deal with a pool of family-related Hella shareholders for 60 euros ($70.75) per share, valuing the company at 6.7 billion euros.

The acquisition allows Foracea, a supplier of brands such as Ford, Renault and Tesla, to boost its expertise in connected and electrified components.

Reporting by Gwenelle Barzic Writing by Sylvia Alosi Editing by Mark Potter

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