Volkswagen AG needs 2 billion euros to complete Scania takeover image

After the German automaker succeeded in its takeover bid to acquire the remaining stake in Swedish heavy truck maker Scania, it now said it raised around 2 billion euros ($2.72 billion) to support the payment.

In a not so hassle free takeover bid which saw the deadline for the remaining shareholders of Scania to approve the takeover extended, VW managed to get its 6.7 billion euro proposal accepted by the needed majority – at least 90%, according to Swedish law.

Now, Europe’s largest automaker and the second in the world moved to issue new preference shares in an accelerated offer to institutional investors to raise up to 2 billion euros ($2.72 billion).

“The placement seems to have gone smoothly and the dilution is rather small,” Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler, said by phone. “You can argue about whether or not this capital increase was really necessary as VW could have financed the transaction without it.”

The Wolfsburg, Germany-based company said in a statement that institutional investors acquired 10.5 million shares at 191 euros per share, a discount of 2.4 % from the closing price registered yesterday. Volkswagen wants a more powerful three-way alliance between its three truck making units – Scania, MAN and VW’s namesake commercial-vehicle division.

Via Reuters, Bloomberg