The Sioen family increases the takeover offer for its own company
The Sioen family is stepping up its efforts to have the textile company of the same name taken off the market. The price of the buyback offer is raised from 23 to 27 euros per share.
The Sioen family, united in the Sihold holding company, announced in October that they wanted to delist the Ardooie-based textile manufacturer of the same name. She therefore felt that the rating was no longer useful.
The family still owns 65% of the shares of Sioen Industries, which went public in 1996. With an offer of 23 euros per share, a 26% premium on the last price, they wanted to regain full control of the company and remove it from the quotation. It would have cost Sihold 158 million euros.
As with the Orange Belgium takeover bid, large and small shareholders immediately protested against an offer that was too low.
But, as with the Orange Belgium takeover bid, large and small shareholders immediately protested against an offer that was too weak. The price offered is indeed higher than the price which has fallen sharply due to the pandemic, but it is lower than the price at which Sioen was listed a few years ago. Investors felt that this did not give them the opportunity to participate in the company’s turnaround. Another argument was that since the offer was announced, Sioen’s sector competitors have grown by an average of 40%.
Just before the end of the acceptance period, the family therefore gave in and Sihold raises the offer price to 27 euros per share. This represents a significant increase of 17%, which means the family must set aside an additional 27.6 million euros for the operation. Sioen is valued at 534 million euros.
In a press release, CEO Michèle Sioen admits that during meetings in recent weeks, institutional and individual shareholders criticized the offer “for very different reasons”. “In order to respond to these complaints, we have decided, as a family, to increase the offer for Sioen shares. In this way, shareholders will get a better price for their shares and at the same time we will be able to complete the offer“, says Ms Sioen.
The acceptance period, which normally ran until Thursday, February 18, was extended by at least six working days.
To allow investors to respond to the enhanced offer, the acceptance period, which normally ran until Thursday, February 18, was extended by at least six business days.
Sioen has experienced impressive growth since its IPO, both organically and through acquisitions in countries like Italy, Germany, Finland and the UK. Thecompany has more than 4,000 employees in more than 20 countries. It recorded a turnover of just over half a billion euros in 2019. The range includes tarpaulins for trucks, tents or bulletproof vests, sports mats and cutting nets. -wind, as well as protective clothing for firefighters, fishermen and hunters.