Amburg, Germany – The management and supervisory boards of Grammer have welcomed a takeover bid by China’s Jiye Auto Parts.
The company uses polyurethane in its production of automotive seats and interiors.
The boards said: ‘Taking into account the future prospects of the Grammer Group as an independent group, the overall circumstances of the offer…the consideration offered by the bidder is appropriate.’
Jiye Auto Parts is offering each shareholder EUR 60/share and an additional EUR 1.25 dividend payment. The price is a 19% higher than the closing price on 28 May 2018, the day before the announcement.
The German seat-maker said the Wang family wants to stabilise the shareholder structure and to help it grow. The Wangs are major shareholders in Jiye Auto Parts.
Jiye has given a number of undertakings as part of its take over offer. A key factor in the boards’ approval is that for at least seven and a half years after the take over there will be no attempts to move the company location, close factories or alter employee terms and conditions. Grammer will remain listed.
Earlier in 2017, the German company saw off a take-over attempt by Cascade International with help from Ningbo Jifeng. The Chinese company bought a 25.5% stake in the third quarter of 2017.