Accell Group: All Options Open for Derby Cycle Take-Over

HEERENVEEN, The Netherlands – After yesterday’s statements made by Accell Group CEO René Takens (photo) in the financial press on placing a possible rival bid for Derby Cycle AG; he said this morning that all options are still open. “We are not ruling any possibility out.”

Yesterday, this trade journal issued a Newsflash on Derby Cycle’s announcements that: “Negotiations regarding a business combination agreement with a strategic partner reached an advanced stage.” The Financial Times in Germany said that Dutch Gazelle-owner Pon Holding is to take-over Derby. Pon declined to comment on the report.

In the Derby Cycle press release on the negotiations with a strategic partner, Accell Group was specifically excluded as a potential take-over candidate because the Derby Cycle statement said: “Current shareholders of Derby Cycle AG are no potential partners.” Accell Group acquired a 22% stake in Derby Cycle by late August.

At that time Accell Group denied that the enlargement of its stake in competitor Derby Cycle was aimed on a complete take-over Germany’s biggest dealer-distributed bike maker. “There are no talks with Derby Cycle and a takeover is not an issue,” said Accell Group’s Chief Financial Officer Hielke Sybesma last September 1 to Dow Jones Newswires. Yesterday and also this morning CEO CEO René Takens said something different.

“At this moment it is not confirmed yet who Derby’s new strategic business partner is. Of course there are rumours, but they are not confirmed yet. I also didn’t hear any details on the bid placed for Derby by this strategic partner. So, we wait for that info to come in,” said Takens.

Takens continued: “We don’t rule anything out at this moment. We own a 22% stake in Derby Cycle AG. We acquired this stake with the intention to enlarge it further in the near future. With the Derby announcement a new situation occurred. We are now in the process of establishing a future course for which we need additional info.”

According to SNS Securities financial analysts Accell could either make a 15 to 20 million-euro trading profit if it sold its shares in Derby, or alternatively bid 140 million euro for the outstanding Derby shares. SNS Securities further said Accell could fund a full takeover, but added its debt/EBITDA ratio would be stretched at 3-3.5 times.