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Renova launches mandatory tender offer for Sulzer shares

The offer was triggered by a recent share purchase by Renova subsidiary Tiwel Holding AG. Renova now has a 33.36% stake in Sulzer, exceeding the 33.33% threshold at which the company is legally obliged to make a mandatory offer.

The CHF99.20 per Sulzer share offer price is the minimum allowed by stock market law.

According to Renova, the tender offer should not significantly change the existing Sulzer ownership structure. Renova says that it has no intention of taking Sulzer private and that it wants the Swiss engineering group to remain a strong publicly listed company.

Renova, which has been investing in Sulzer since 2007, says that the mandatory tender offer confirms its long-term commitment to Sulzer and its current strategic focus.

“With our mandatory tender offer, we at Renova want to actively support Sulzer’s future and its successful strategic development,” said Peter Löscher, CEO and delegate of the board of directors of Renova Management AG.

Löscher is also chairman of Sulzer. To avoid any potential conflicts of interest, Löscher is withdrawing from any discussion of the mandatory tender offer until it is completed. Marco Musetti, Renova’s second representative on the Sulzer board, will also not participate in the discussions.

The period for tendering shares should run from 18 August 2015 until 14 September 2015.