Accell Group Stops Takeover Talks with Pon Holdings
HEERENVEEN, The Netherlands – Accell Group announces that it is stopping the exploratory discussions with Pon Holdings about Pon’s 11 April bid for a takeover. Accell statement comes even after Pon raised its bid for the Accell shares with one euro to € 33.72 per share. Today’s statement by Accell digs deeper in the reasons why it turns down the offer made by Pon Holdings.
Main reason for ending the talks and negotiations is in Accell’s conclusion that “Pon Holding’s offer does not sufficiently reflect the future value creation of Accell Group as well as due to the lack of sufficient support from the shareholders.”
Pon’s raised offer
Accell statement also says “Having conducted a number of discussions on the original offer, Pon Holdings subsequently indicated on 29 April last it wanted to raise its indicative offer with one euro to € 33,- per share in cash (excluding the dividend of € 0.72 for 2016) while maintaining the remaining terms of its proposal. However, this increase did not significantly affect the assessment of the proposal.”
Accell’s future value creation
On that assessment Hielke Sybesma, interim-Chairman of the Executive Board says “Having studied every important aspect of the offer, the Supervisory Board and the Executive Board have come to the joint conclusion that Pon Holding’s offer does not sufficiently reflect the future value creation of Accell Group and the expected synergies. It has also become clear that the offer lacks sufficient support from shareholders. The reference we used for our assessment of the proposal was the roll-out of our refined strategy and the value this will enable us to create, as well as the interests of all stakeholders. Based on this we will currently discontinue the talks with Pon Holdings.”
The starting point of the Supervisory Board and the Executive Board of Accell Group is the successful roll-out of the company’s refined strategy in a stand-alone scenario. To the Supervisory Board and the Executive Board of Accell Group, Pon Holding’s (increased) indicative offer price constitutes inadequate recognition of the future value Accell Group can create independently. This currently does not give them the confidence that continuation of talks with Pon Holdings could lead to a final proposal that could count on sufficient support from shareholders.
Accell invests 30 Million in new strategy
Accell Group made its new strategy know at the company’s press conference on the 2016 financial results that took place mid-March. This redefined strategy has multiple implications but above all places a clear focus on e-mobility and recreation, with the bicycle as a product and a service for the upper echelons of the market. The company wants to act more efficiently in the market and respond as effectively as possible to the purchasing and use preferences of individual consumers. This all comes together with ‘consumer centricity’, as Accell Group gives more priority to the consumers and increasingly supplies its products and services using an omni-channel approach, in cooperation with specialist retailers.