Apollo immobilizes its 22% in Applus and asks for an advisor to thwart the takeover of I Squared and TDR

Process public acquisition offers (takeover offers) O Applus lives in a new round before the decision Apollo Global Managementone of the competitors vying for control of the Spanish company, immobilize your 22% in the capital and ask forappointment consultant at the next meeting called 27th of June.

This means Apollo appears unwilling to participate in a competing takeover bid formulated by a consortium of companies. I’m squared and TDRalthough he offers a price 12.78 euros per sharehigher 12.51 euro who offered to pay the New York fund in his proposal and 10.65 euros per share, which paid the aforementioned 22% in January.

Apollo withdrew its takeover offer last week under pressure from CNMV that he did not want the takeover bid to win this battle at a lower price. Apollo hoped to enlist the support of several hedge funds with which he signed a 22% purchase in January and continued to accumulate new shares, but the regulator suspended their activities. Thanks to the contracts signed at that time, these funds (the case Samson Rock and Maven Investments) got more from Apollo’s lower-priced takeover bid than from the consortium’s bid, so they began buying Applus securities to facilitate that outcome.

Now, while maintaining its 22%, Apollo may make it difficult I’m squared and TDR reach 50.01% with which they condition their takeover offer (especially if it has the support of other investors), and even if it exceeds this limit and the bid is successful, if the New York fund joins the board of directors, it can from there complicate the takeover of the consortium and delisting of the company from the stock market.

Applus takeover bid period ends June 4.

In its report on the offer, the board of directors of Spanish operator ITV said that “as of May 22, 2024the original offeror (Apollo) informed the company your formal request to appoint a consultant at the next general meeting of shareholders in order to exercise the right of proportional representation, grouping and, therefore, immobilization for this purpose in total 28,204,123 sharesrepresentative 21.85% of the authorized capital“.

Currently in the call for a meeting 27th of June This offer is not included. The Board of Directors unanimously supports the proposal from I Squared and TDR shareholders, adequate price and lack of liquidity that the stock could suffer after the operation.

According to agreements with hedge funds from Apollo, this company you don’t have to compensate them with a difference in attitude 10.65 euros per share that he paid them in January and the final takeover bid price if the sale was rejected. If you transferred your 22% to I Squared and TDR, you would have to give them 75% difference with a €12.78 takeover offer.