Schaeffler AG, which is currently in the process of acquiring the German automotive supplier, Vitesco Technologies Group AG, has disclosed the preliminary share exchange ratio for the pending merger. The agreed-upon exchange ratio stands at 1:11.4, meaning, 11.4 Schaeffler shares will be swapped for each Vitesco share.
This agreement, however, is contingent on a few conditions. The exchange ratio must be validated by a joint valuation expert that is mutually agreed upon by both parties and by an auditor appointed by the court. Additionally, the supervisory boards of both Schaeffler and Vitesco must give their approval.
In November of the previous year, Schaeffler, a German company known for manufacturing rolling element bearings for the automotive and aerospace industries, implemented a Business Combination Agreement with Vitesco, setting their sights on establishing a motion technology company. By the end of January, Schaeffler agreed to purchase an additional 3.6 million Vitesco shares, approximately 9 percent of the company. This boosted Schaeffler's stakes in Vitesco up to 38.87 percent.
According to recent trading updates on Germany's XETRA, Vitesco's shares are currently being traded at 77 euros per share, reflecting a fall of 7.84 percent.
