The boards of American Axle & Manufacturing Holdings (AXL) and Dowlais have agreed on the terms for AAM's proposed offer, which combines cash and shares for the entire ordinary share capital of Dowlais. Dowlais shareholders are set to receive 0.0863 new AAM shares, 42 pence in cash, and up to 2.8 pence as a final cash dividend per share before completion. This offer values each Dowlais share at an implied total of 85.2 pence. Furthermore, the combined terms, including the final dividend, approximate the total value of Dowlais' fully diluted share capital at about 1.16 billion pounds.
Upon the transaction's completion, it is anticipated that Dowlais shareholders will possess roughly 49 percent of the newly issued and outstanding group's common stock, while AAM shareholders will hold about 51 percent. Dowlais shareholders will thus receive initial cash compensation and have the chance to benefit from the future value growth of the combined entity.
