Kone shareholders back $34 billion TKE takeover plan
Overview of Kone's Acquisition of TK Elevator
Shareholder Approval and Deal Structure
HELSINKI, June 3 (Reuters) - Finnish elevator maker Kone said on Wednesday its shareholders have approved the company's planned $34 billion acquisition of German rival TK Elevator (TKE), which is set to create the world's largest lift-making group.
Details of the Acquisition
The deal announced in April with Advent International, Cinven and other TKE owners is one of Europe's biggest takeovers in years and the largest sell-side private equity deal in Europe since records began in 1980, LSEG data show.
Shareholder Voting and Pre-commitments
The approval required a two-thirds majority at an extraordinary general meeting, which had effectively been secured in advance with Kone saying shareholders controlling about 74% of voting power had pre-committed to backing the deal.
Market Impact and Regulatory Considerations
Analysts however expect antitrust scrutiny given the market is already highly concentrated, and Kone in April indicated it could thus take some 12 to 18 months to close the deal.
Financial Implications and Industry Position
The cash-and-shares deal, valued at 29.4 billion euros ($34.2 billion) including debt at the time of announcement, would propel Kone past U.S. rival Otis, create a European champion and strengthen its presence in the Americas.
Deal Value Fluctuations
The ultimate value of the deal depends, however, on the fluctuations in Kone's share price.
Exchange Rate Information
($1 = 0.8610 euros)
(Reporting by Essi Lehto, editing by Terje Solsvik and Anna Ringstrom)
