Autoliv confident of getting more than 90% of Norma
12.03.2010, 14:46Swedish car equipment producer Autoliv is confident that it will succeed in increasing its holding in its listed Estonian seatbelt maker Norma to over 90%, writes news2biz. "Professional investors have agreed to sell their shares, and their commitment is irrevocable," says Mats Ödman, vice-president of corporate communications at Autoliv to news2biz. "It would be rather unlikely for Autoliv to get less than 90% of shares."
Even though some investors have claimed the bid too low, there is a high possibility that it will still go through, as Autoliv has the backing of major institutional investors, owning 26.4% of Norma.
Autoliv made a bid for the minority shares of the Tallinn -listed seatbelt maker Norma, promising to invest 10 million euros in Norma in the next two years if successful.
Autoliv, currently owning 51% of Norma, offered the minority shareholders 92.31 kroons for a share on 1 March, 45% higher than the weighted average share price in the last six months, and 28% premium compared to the closing price in the previous trading day.
Norma's institutional investors include the Estonian, Swedish and US-registered fund managers Gild, East Capital and Firebird, as well as the Danish Danske.
Gathering 90% of the company is crucial, since after gaining that amount the majority owner can squeeze out the minority shareholders.