AVEVA - EGM 24 November 2020
AVEVA will acquire OSIsoft Group for an enterprise value of $5 billion (£3.77m), on a cash-free and debt-free basis. The consideration will be paid $4.4 billion in cash plus 13.7 million consideration shares. The cash part will be funded through a capital increase up to $3.5 billion and the balance of $900m by new debt facilities.
AVEVA will issue 125,739,796 rights on the basis of 7 rights issue shares for every 9 ordinary shares held, which correspond to 77.8% of the current issued AVEVA capital. Their price is set with a 45.8% discount. 13.7 million consideration shares equal 8.4% of the current capital and will be issued to the OSIsoft founder Dr J. Patrick Kennedy without discount.
ECGS considers the proposed deal as an interesting opportunity to acquire a clear market leader and defacto industry standard. Nevertheless, the deal is transformational for AVEVA and investors should seriously assess integration risks.
The price is reasonable with regards to sector multiples, new borrowings will increase the leverage without harming the group’s strong financial position.
Aveva Group is a holding company. Through its subsidiaries, Co. is engaged in the licensing of the rights to use its software products directly to end users and to a lesser extent indirectly through resellers. Co.'s services consist primarily of consultancy, implementation services and training, and are performed under separate service arrangements. Co.'s products are most applicable in industries that include Oil and Gas, Marine, Power, Petrochemical and Chemical, and other markets such as AEC Fabrication, Paper and Pulp, Mining and Pharmaceuticals.
Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.
Proxinvest main services are :
- Proxy reports
- Definition and monitoring of client customized voting guidelines
- Corporate Governance Data and Rating
- Thematic research
- Engagement support
Proxinvest has been a pioneer and champion of good corporate governance and has grown into a recognised expert in the field.
Proxinvest is independently-owned and only works for investors : Proxinvest does not provide consulting services to the companies it covers, mitigating related risks to its clients and ensuring the independence of our analysis. As a result Proxinvest is able to take a robust, independent, engaged and unconflicted view of the companies in which our clients invest.
As Managing Partner of Expert Corprate Governance Service Ltd (ECGS), Proxinvest has built a large network of corporate governance experts to support clients in corporate governance analysis worldwide.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.