ALMERE, The Netherlands – After Pon Holdings announced its bid for 20 percent of all Accell Group’s shares last Tuesday, financial analysts were quick to react by saying that they regard this move by the multi-billion euro earning Dutch family business as just a first step. They are convinced that ultimately Pon wants to take over the Accell Group in its entirety in order to establish the world’s biggest (electric) bike company.
Creating that cycling superpower was already what Pon Holdings aimed for in April 2017 when it offered to pay about 850 million euro for all Accell Group’s shares through a bid of € 32.72 per share in cash. In the end this bid was refused by Accell’s Executive and Supervisory Boards. That Pon is now again knocking on Accell’s doors is seen by financial analysts as a brilliant move.
On that great move ING states that Pon, as a minority shareholder of Accell Group, acquired an excellent position. “Pon can, on the one hand, benefit greatly if Accell carries out its strategic initiatives well and the share price rises. On the other hand, Pon has a good position to make an offer for the entire company, if the strategic implementation of Accell does not work out that well and the price drops.” Last March, with the publication of its 2017 financial results, Accell Group outlined its strategy changes as well as the company’s roadmap for the period 2018 – 2022, including related goals and guidance for required investments as well as anticipated savings. Accell also said that with its new strategy the company is to become leader in the market for mid to high end e-bikes.
Since placing its bid last Tuesday Pon bought over 2 million Accell Group shares. With that Pon Holdings, which is an over 8 billion euro international trading and servicing company with approximately 13,000 employees spread over 450 branches in 32 countries, now owns a close to 12 percent stake in Accell. Acquiring that stake is also regarded as a smart way to get access to the Heerenveen, the Netherlands based bike maker and even possibly a seat in the Supervisory Board. This should bring Pon inside knowledge in order to see how the business is developing at Accell Group.
Furthermore, financial analysts pointed out what is to happen when Pon Holdings increases its stake in Accell beyond the 20 percent mark. It is said that, In case of an interest above 30 percent, a mandatory offer must be made for the take-over of the whole Accell Group NV. Once that happens a cycling multinational will emerge that money-wise is the biggest bicycle and e-bike manufacturer in the world making about 2 million bikes annually with total revenue of close to 2 billion euro.
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