Volkswagen Group’s bid to buy out the rest of Scania has encountered a hurdle after Alecta, the truck-maker’s third-largest shareholder, declined the offer as the proposed price is too low. VW is bidding SEK200 ($30.4) a share, or a total of EUR6.7 billion ($9.3 billion) for the stake in Scania it currently does not own.
VW – which controls 62.6 percent of Scania's capital via direct and indirect holdings – wants to completely acquire the truck-maker to press on closer collaboration between the Swedish company and MAN, which VW also controls.
Swedish pension provider Alecta held a 2.04-percent stake in Scania at the end of March. It joins other shareholders AMF, Skandia and AP4 in rejecting the VW’s bid. Scania’s fourth-largest shareholder Swedbank Robur (1.87 percent) has yet to publicly indicate its intentions. If it chooses to reject VW’s bid, the total amount of holdings against the offer would surge to around 6.3 percent.
VW earlier disclosed this month that it would not hike its price bid, but would only pursue it if the shareholder acceptance reaches 90 percent, which the threshold required under Swedish law to force remaining shareholders to sell their stakes and delist the company. VW's offer expires on April 25.
Alexander Whight, an analyst at JPMorgan Chase & Co., said in a note to clients that getting the 90-percent acceptance threshold for VW is not a given. Around 8 percent of Scania's shareholders have indicated they will either not accept the offer or may not take it due to their nature.
Alecta said that its decision was based on its own analysis. The company noted that an independent committee of Scania's board concluded in March that the offer doesn't fully reflect Scania’s fundamental long-term value.