GE’s (NYSE:GE) planned takeover of Arcam AB (ETR:MAC1) and SLM Solutions Group AG (ETR:AM3D) moved a step closer yesterday.
SLM Solutions board members, on the management and supervisory boards, voted to approve a recommendation that shareholders accept the GE offer.
The vote to proceed with the takeover was unanimous and as previously reported values the German company’s shares at 38 Euro or 42.54 USD at current exchange rates. This offer gives the company a value of $761 million.
Shares in SLM Solutions closed on Wednesday evening at 40.60 Euro. The above offer price reflects speculation by investors that a counteroffer from another party may still be received, driving the share price yet higher.
Deadline approaching
However, as the GE offer document explains, shareholders must accept the terms by 24:00 hours (CET) on the 24th of October, a date less than three weeks away. For the deal to proceed GE have set a 75% acceptance condition, if less than three quarters of shareholders accept the offer then plans must be revised.
When the news was announced that the U.S. giant would purchase two European companies, shares immediately leaped. In the case of SLM the deal represents a premium of 37% on the day’s closing price prior to the announcement on September 6th.
As a publically traded company SLM Solutions are subject to regulation by a local supervisory body, the German Federal Financial Supervisory Authority (BaFIN). This group has also granted approval for the takeover to proceed.
With the successful acquisition GE will gain control of important 3D printing technologies, and the patents behind them. The multinational will also acquire a foothold in the supply of spherical metal powders for 3D printing as it gains ownership of Arcam subsidiary, AP&C.
Concerns for existing customers
Industry comment has ranged from favorable, as the deal brings greater investment to the 3D printing world, to concerns over the prospects for existing customers of the two takeover targets.
GE has indicated that it intends to continue supplying rival companies and to make Arcam’s EBM technology available to the wider market. The U.S. company explains that the acquisition is designed to advance and industrialize metal 3D printing for the wider market and become, “an integrated systems provider.”
Furthermore, SLM Solutions reiterated their “clear commitment to the workforce, to management and to the locations” in yesterday’s release.
The unanimous decision was driven by the opinion of SLM’s boards that acquisition by GE would “reap particular benefit from the excellent financing possibilities” and “enable the company to continue to chart its pursued course of dynamic growth.”
