Chinese company obtains majority stake in Grammer

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Chinese automotive supplier Jiye Auto Parts GmbH has acquired a strategic majority share in German parts manufacturer Grammer AG.

The Amberg, Germany-based Grammer said in a 9 Aug announcement that around 48.45% of its shareholders had accepted Jiye Auto’s offer to purchase their shares.

Jiye Auto is a part of Ningbo Jifeng automotive group, which is already a 25.56% shareholder in Grammer.

The recent successful tender offer will raise Jifeng’s shareholding in Grammer to just over 74%.

The acceptance period for the remaining shareholders runs for a further 14 days, until the end of the day on 23 Aug.

The Chinese company made its offer to buy Grammer’s remaining shares at the end of May, which reportedly faced disagreement from the company’s biggest shareholder, Cascade International Investment GmbH.

Based on the agreement reached between Grammer and Jifeng on 29 May, Jiye Auto Parts would buy Grammer shares for a total consideration of €61.25, which Grammer said was 19.4% over the closing price of its shares as of 28 May. This would put the value of Grammer at €770m.

This, however, was reportedly rejected by Cascade, which is controlled by the Bosnian billionaire family, Hastor.

Cascade said in a 30 May statement to Bloomberg that it found the offer “unsatisfactory" in light of Grammer’s recent acquisition of US thermoplastics process technology company, Toledo Molding & Die on 22 May.

According to the statement, a more realistic price for the shares could be around €100.

In its 9 Aug statement, Grammer announced no further details about the final prices of the shares sold.

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