By Giulia Petroni
Greenlight Capital, a minority shareholder of Vitesco Technologies Group, is urging the auto supplier to push for an improved takeover bid by Schaeffler or consider alternative options. In a statement released on Monday, Greenlight Capital called on Vitesco to disclose its fair value assessment and compare it to Schaeffler’s proposed offer of €91 ($97.6) per share. According to Greenlight Capital, a conservative valuation would place the fair value of Vitesco at least at €150 per share, with an enterprise value of at least €6 billion.
Schaeffler had previously made an offer to acquire all of Vitesco’s shares, valuing the company at €3.64 billion. However, Greenlight Capital believes that the offer significantly undervalues Vitesco.
In addition to seeking an improved bid, Greenlight Capital suggests other alternatives, including the sale of Vitesco’s powertrain-solutions business to Schaeffler or the spinoff of the company’s electrification solutions to Vitesco’s shareholders.
Greenlight Capital and its affiliates collectively hold approximately 3.5% of Vitesco’s shares. Vitesco and Schaeffler have yet to comment on the matter.
Vitesco had previously formed an independent committee to evaluate Schaeffler’s bid, considering concerns raised by shareholders and employee representatives regarding the offered price and the company’s prospects in a merged entity.