Tata Motors secures 89.42% acceptances for Iveco takeover bid

Tata Motors has secured provisional acceptances for 89.42% of the shares in Iveco Group, completing a crucial step in its €3.91 billion takeover bid. The company’s wholly owned subsidiary, TML CV Holdings B.V., confirmed that 238,157,212 shares were tendered by the closing date of October 26, 2023.

The acceptance exceeds the required threshold of 80%, allowing Tata Motors to move forward with the acquisition. In a regulatory filing, Tata Motors stated, “The Threshold Condition has been satisfied,” based on the provisional results.

Approximately 87.81% of Iveco’s total share capital has been tendered, excluding treasury shares, which constitute about 1.8%. The total bid comprises shares priced at €14.40 each, an increase from the original offer of €14.10.

Girish Wagh, managing director and CEO of Tata Motors, expressed confidence before the deadline, stating that substantial late participation is common in such processes. The final results of the offer are expected to be announced on October 29, with payment for the accepted shares scheduled for October 30.

Shareholders who did not participate in the initial acceptance window will have another opportunity to tender their shares from November 2 to 6. This window follows a resolution at an extraordinary general meeting that reduced the acceptance threshold from 95% to 80%.

The acquisition focuses on expanding Tata Motors’ commercial vehicle operations in Europe and internationally, while excluding Iveco’s defence business, which is being separated from the group.

Tata’s bid has faced criticism from activist investor Petrus Advisers, which holds a 3.8% stake in Iveco. The firm argues that the offer undervalues Iveco compared to global commercial vehicle peers.

The deal is viewed as a significant move for Tata Motors, which had previously successfully acquired Jaguar Land Rover. Industry analysts have raised concerns about European market conditions and integration costs.