EQT Acquires Majority Stake in OEM International

In one of the potentially largest take-private deal in Sweden, EQT, a private equity firm based in Stockholm, acquired a majority stake in OEM International for $1.4 billion, the company said on Tuesday.

EQT through Oak BidCo, offered public takeover offer to the shareholders of OEM International to transfer all shares for $9.93 in cash per share, representing a 12% discount from its Monday closing price.

The company further said that OEM International’s four largest shareholders – Orvaus AB, Siv Franzén, Agne Svenberg and AB Traction, have irrevocably committed to handing over part of their shareholding in the offer (corresponding to approximately 72.5% of the total number of votes and approximately 25.7% of the total share capital), while retaining an ownership stake in the company. “This demonstrates their belief that EQT will be a reliable partner in securing OEM International’s future and as a good steward of the families’ legacy,” the PE firm said.

The acceptance period of the offer is expected to commence on or around 19 December 2024 and expire on or around 27 February 2025, subject to any extensions.

The completion of the offer is conditional upon the receipt of all regulatory, governmental or similar clearances, approvals and decisions that are necessary for the Offer and the acquisition of OEM International, in each case on terms which, in EQT’s opinion, are acceptable. For the avoidance of doubt, the completion of the Offer is not conditional upon reaching a certain minimum acceptance level.

Bid Committee Rejects

Confirming that it has received the bid offer, OEM International said that it has formed an independent bid committee which said that the offer was “not fair from a financial perspective” and recommended that shareholders not accept the offer.

EQT’s acquisition can go ahead regardless, as it is made on a voluntary takeover basis, meaning there is no minimum acceptance threshold for the deal to go forward. Under Swedish law, if EQT secures more than 90% of the share capital with voting rights, it can force the remaining shareholders to sell their shares at the price offered in the takeover bid.

According to Pitchbook, the total Swedish take-private deal value in 2024, not including this latest deal, has surpassed $1.09 billion, representing a rebound from 2023, in line with the wider trend in Europe.

The largest deal in Sweden was Greenoaks Capital Partners and Long Path Partners’ €774 million privatisation of Karnov Group. This was followed by CVC Capital Partners and Waldakt’s $398.19 million take-private of Resurs Holding in June.

In October, EQT, the Canada Pension Plan Investment Board and Temasek Holdings completed a take-private deal involving London-listed video game services company Keywords Studios worth $2.69 billion.