Suse, the software company, experienced a significant increase in share prices after its majority shareholder, Swedish private-equity group EQT, announced its intention to take the company private. The deal, which includes an interim dividend, values Suse at 2.83 billion euros.
Surge in Share Prices
As a result of the news, Suse shares saw a remarkable 60% spike in trading, reaching EUR15.35 as of 0943 GMT.
Offer Details
Marcel, an EQT-controlled entity holding approximately 79% of Suse shares, stated that shareholders who do not currently own shares will receive EUR16 per share, including the expected interim dividend to be paid in October. The actual size of the dividend depends on the number of Suse shares tendered into the offer.
Valuation and Funding
Based on fully diluted share-count data provided by FactSet, this bid implies a valuation of EUR2.83 billion for the entirety of Suse. The funding for the offer will come from the dividend received by Marcel from Suse. The deal’s completion is contingent upon receiving an adequate payout.
Delisting Plans
EQT plans to delist Suse from the Frankfurt Stock Exchange, enabling the company to concentrate on its long-term strategy without public market pressure. Suse’s management and supervisory boards are supportive of the delisting decision.
Offer Comparison
This offer price represents a significant discount compared to the initial public offering price of EUR30 per share when Suse went public in May 2021. Despite the discount, it still represents a premium of approximately 67% compared to Suse’s closing price on Thursday.
