Aveva Share Discussion Threads

[waldron] 22/11/2022 22:35

French swoop on Aveva hanging in the balance: Schneider Electric deal would be hammer blow for UK, says top investor

By Mark Shapland For The Daily Mail

Published: 22:00 GMT, 22 November 2022 | Updated: 22:00 GMT, 22 November 2022


The French takeover of one of Britain’s biggest technology firms is on a knife edge as opposition from shareholders mounts.

Paris-based Schneider Electric – which already owns 59 per cent of FTSE 100 listed Aveva – plans to buy the remaining 41 per cent for 3225p per share in a deal that values the Cambridge-based software firm at £10billion.

But the takeover hangs in the balance as it requires the approval of at least 75 per cent of minority shareholders at a key vote on Friday.

Target: Schneider Electric – which already owns 59% of Aveva – plans to buy the remaining 41% for 3225p per share in a deal that values the Cambridge-based software firm at £10bn


Target: Schneider Electric – which already owns 59% of Aveva – plans to buy the remaining 41% for 3225p per share in a deal that values the Cambridge-based software firm at £10bn

Given the French group cannot vote, it would only take 10 per cent of the overall shareholder base to reject it for the deal to be blocked.


And there are growing signs that opposition to the proposals could scupper Schneider’s swoop on one of Britain’s oldest technology companies.

City heavyweight Jupiter – a top 40 shareholder in Aveva – became the latest to speak out, warning the deal would be a hammer blow for London as the UK looks to turn itself into the Silicon Valley of Europe.

Another top 20 investor, which did not want to be named, said: ‘We believe that the current bid from Schneider Electric for Aveva materially understates the true long-term value of the business.

‘We are concerned that the approach appears highly opportunistic at a time of business model evolution and follows a difficult period of share price performance.

‘Aveva is a leading UK software company, which in our view, will play a significant role in accelerating climate transition, as a green solutions enabler for its customers across multiple end-market industries.

On this basis, we do not believe the bid fairly reflects the future value creation potential of the business.’

They joined other leading money managers including M&G Investments, Davidson Kempner and Canadian firm Mawer, who all have previously said they will vote against the deal.

Schneider first made an offer for the rest of the company in September, tabling 3100p a share for the 41 per cent of Aveva it does not already own. 

But after New York-based Davidson Kempner accused the French firm of ‘opportunism’ and ‘poor communication’, the offer was raised to 3225p a share on November 11.

Schneider, however, said the offer was final.

Speaking to the Mail last night, Jupiter investment manager Richard Buxton said: ‘It would be good for London and long-termism if voters said no.

‘The increase on November 11 from Schneider wasn’t much. ‘But the question is will holders want to turn them down and stick it out as a minority.’ 

Buxton is one of the most recognised fund managers in the City and has previously called for software business Arm to come home and be listed in London.

Aveva is one of the London Stock Exchange’s few remaining technology firms. Spun out of Cambridge University in the 1960s, it provides software to help engineers design major industrial projects as well as products that help run factories.

Business Secretary Grant Shapps has come under increasing pressure to intervene in the Aveva deal on national security grounds. 

Fears in particular have been raised about Schneider’s joint venture with Chinese conglomerate Delixi Electric. Critics say that if Aveva is taken over its proprietary technology is at risk of falling into Chinese hands.

[adrian j boris] 12/11/2022 07:45

Schneider Electric in sweetened £10bn final offer for Aveva: French business offers to pay 3225p for each share it does not already own, up from 3100p

By Calum Muirhead For The Daily Mail

Published: 21:50 GMT, 11 November 2022 | Updated: 21:50 GMT, 11 November 2022

[maywillow] 18/10/2022 10:01

Aveva Group PLC said Tuesday that revenue for the first half of fiscal 2023 declined by a low-single-digit rate on year on an organic constant currency basis as costs increased significantly against the first half of the prior year, which was affected by Covid-19.

The U.K. engineering and industrial-software company said, however, that on a reported currency basis revenue grew at an upper-single-digit rate, amid the strengthening of the U.S. dollar. The dollar accounts for the majority of Aveva's revenue, it said.

Net debt was around 618 million pounds ($702 million) on Sept. 30, the end of its fiscal first half, including the negative impact of currency translation of over GBP110 million.

Full-year forecasts show revenue seasonality at broadly similar levels to previous years and significantly lower second-half cost increases.



Write to Kyle Morris at [e-mail]



(END) Dow Jones Newswires

October 18, 2022 02:30 ET (06:30 GMT)

[roger4ever] 04/10/2022 19:36

Provided the minority shareholders vote against the Offer in November, en masse, on the basis this Offer undervalues the company's potential, then the required 75% will not be met. We will then continue as Minority holders and can look forward to increasing growth and share values over time, or a seriously better Offer.

[misca2] 23/9/2022 20:11

Aveva investors plan to reject £9.5bn Schneider takeover

Sep 23, 2022 | News, UKPEC

Mawer and M&G say £9.5bn bid from French group undervalues UK software developer

A top-10 investor in Aveva plans to reject Schneider Electric’s £9.5bn takeover of the software developer on the grounds that it represents an “opportunistic bid” that undervalues the UK group.

Schneider said on Wednesday that it would pay £31 a share for the 40% of Aveva it did not already own – a 41% premium over the company’s closing share price in August, before the potential offer emerged.

Peter Lampert, a portfolio manager at Canada-based Mawer Investment management, which has C$77bn in assets under management and is one of the top five external shareholders in Aveva, said the offer price did not reflect the long-term potential of the company.



“Aveva is a great business with a very promising long-term outlook,” he said. “It’s an opportunistic bid taking advantage of share price weakness in recent months.”

Schneider’s takeover attempt is the latest example of an undervalued UK company being snapped up by a foreign buyer or removed from the stock market by private equity.

Schneider aims to close the deal in the first quarter of 2023, but will need to secure support from at least 75% of minority shareholders in a vote set for mid-November.

Given the French group cannot vote, it would only take about 10% of the overall shareholder base to reject it for the deal to be blocked.

Source: Financial Times

[la forge] 21/9/2022 08:28

Aveva Group PLC said Wednesday that it has agreed to a 9.48 billion pound ($10.79 billion) takeover by its major shareholder French energy management and automation group Schneider Electric SE.

Under the deal, accepting shareholders of the U.K. engineering and industrial-software will get 3,100 pence in cash for each share held. The offer price is a 41% premium to Aveva's closing price of 2,192 pence a share on Aug. 23, the day before Schneider disclosed that it was considering a possible offer for the rest of Aveva that it didn't already own.

Accepting shareholders will also be able to keep any interim dividend of up to 13 pence a share declared by Aveva for the half year ended Sept. 30 without any reduction in the share consideration, Schneider said.

The offer prices puts an enterprise value on Aveva of GBP10.15 billion.

"By taking 100% ownership of Aveva, we will be able to grow the business faster by simplifying decision-making, enabling seamless interactions between teams, accelerating our investments in R&D and enabling a more coordinated sales strategy, while respecting the companies' particular strengths, and accelerating the transition to a subscription business model under private ownership," Schneider Chief Executive Jean-Pascal Tricoire said.

Schneider currently owns 178.6 million shares in Aveva, or 59.14% of its issued share capital via its subsidiary Samos Acquisition Company Ltd.

The acquisition is expected to complete in the first quarter of 2023.



Write to Ian Walker at [e-mail]



(END) Dow Jones Newswires

September 21, 2022 02:53 ET (06:53 GMT)

[hades1] 13/9/2022 06:33

Not really the bidder already owns 60% of the company.

[halfpenny] 08/9/2022 14:02

AVV ….buyer at £30 is not great but a profit is a profit..take it while you can!!

[halfpenny] 08/9/2022 09:57

Frankel, will hype as he is part of a team with Steveb both same person with no clue.

[halfpenny] 08/9/2022 09:56

AVV may go the way DARKTRACE 30% DOWN TODAY!! Offer rejected. AVV may also have offer rejected so be careful as its still Risky..

[halfpenny] 06/9/2022 06:46

Wow!! with Dollar strong we expect a much higher offer..

[halfpenny] 30/8/2022 21:52

AVV looking strong and now there will be a Premium 20% on the offer day price for the remaining shares. Now AVV LOOKING BRIGHT.

[one_frankel] 30/8/2022 21:15

The willing party already own near 60% of Aveva and they've determined the fair value at a 25% premium so why would any other sane party in their right mind start a bidding war as they're already dead in the water even before they've started!

[wad collector] 30/8/2022 21:07

Hard to quite work out why the market has decided that £28 is the value , seems like a guess with a discount for a collapse of the offer.

[halfpenny] 30/8/2022 07:41

AVV 50/50% its up or down too Risky with no Reward at these levels

[halfpenny] 28/8/2022 17:49

Risky After Tuesday will be scary if US falls further as Volumes increase in September and Traders return from vacation leading to much volatility. Looks like any buying will be stalled as market has a mini crash. September/Oct always a bad time to invest leaving prices falling and valuations collapsing. Offer maybe marked down lower than people hope for!! Be ready for some bad news!!

[one_frankel] 28/8/2022 11:23

Where do they find such 'Incompetent' fo_ols from hey HalfPint, who likes to pi_ss with wind albeit without any foresight whatsoever for the future hehe!

...And take that other 'Confirmed' P_akistani fra_ud BoxerMugz or more affectionately known as Mahmood with ya as noone gives a fu_ck about some utterly 'Clueless' irrelevance but who likes to impersonate some HNWs away from all their destitution at some shanty town in Birmingham, oops!

...By the way, would Mahmood sorry BoxerMugz like to see how the 'Other' type live instead of all their 'Awkward' fantasising!

[halfpenny] 28/8/2022 06:48

Monday closed but Tuesday Looks like any buying will be stalled as market has a mini crash. September/Oct always a bad time to invest leaving prices falling and valuations collapsing. Offer maybe marked down lower than people hope for!! Be ready for some bad news and a pullback as profit takers move in!! Risky few weeks ahead for ALL. Rates higher, job layoffs except for government workers, union bosses get huge salary increases over 100k already banked, white collar workers become extinct all wear tee shirts at home working making coffee all day. Thunder Stormes ahoy se get ready!!..

[boxerdogz] 27/8/2022 16:23

India in bed with Russia, tells you all you need to know.

SCUM

[halfpenny] 27/8/2022 08:46

Looks like any buying will be stalled as market has a mini crash. September/Oct always a bad time to invest leaving prices falling and valuations collapsing. Offer maybe marked down lower than people hope for!! Be ready for some bad news and a pullback as profit takers move in!!

[one_frankel] 26/8/2022 11:34

What hasn't BoxerMugz, the deluded P_akistani 'Confirmed' fra_ud who likes to talk about others genitalia albeit on an anonymous board got anything better to do than to troll me across Adfvn but do get some real help with those rather concerning inferiority complexes you have over others hey!

...Meanwhile scour the Internet as you have such a panache for finding those rather obscure articles such as 'Small Dong Marches', you silly mug!

...By the way, is this just inherent to your unfortunate P_akistani heritage which could be incredibly telling as to why the wider Asian community can't stand you destitute sc_um!