Total and Saft have announced the signature of an agreement following which Total filed a friendly tender offer on all of the issued and outstanding shares in the capital of Saft with the French Financial Markets Authority (Autorité des Marchés Financiers (“AMF”)). The proposed offer will target all of Saft’s issued and outstanding shares at a price of 36.50 euros per share, ex-dividend of 0.85 euros per share, valuing Saft’s equity at 950 million euros. The move is in line with Total’s interest in further developing its clean energy assets. Last month, the group announced it would be establishing a new branch for gas, renewable energy and electricity.
The company already has a 57 percent stake in US solar company SunPower and in September 2015 announced it would be investing $500 million (£346 million) per year in renewables, particularly biofuels and solar.
The offer price represents a 38.3 percent premium above Saft’s closing share price of 26.40 euros on May 6, 2016, a premium of 41.9 percent above the volume weighted average share price over the past six months and a premium of 24.2 percent above the volume weighted average share price over the past year. The offer values the company at nine times its 2015 reported EBITDA, which represents a significant control premium compared to recent valuation multiples in the battery industry.
The Supervisory Board of Saft has unanimously approved the friendly takeover by Total and considers the proposed transaction to be in line with the interests of the company, its shareholders and its employees. As part of the reasoned opinion that it must issue in accordance with market regulations, the Supervisory Board has also announced its intention to recommend that its shareholders tender their shares.
The Supervisory Board of Saft has decided to appoint Finexsi as an independent expert. The proposed offer is subject to review by the AMF, which will evaluate its compliance with applicable laws and regulations.
“The combination of Saft and Total will enable Saft to become the Group’s spearhead in electricity storage” said Patrick Pouyanné, Chairman and CEO of Total. “The acquisition of Saft is part of Total’s ambition to accelerate its development in the fields of renewable energy and electricity, initiated in 2011 with the acquisition of SunPower. Saft’s renowned technological know-how and unique expertise have allowed it to develop innovative and competitive solutions for its clients. It will notably allow us to complement our portfolio with electricity storage solutions, a key component of the future growth of renewable energy. This transaction will also enable Saft, its management and employees to benefit from Total’s technical, industrial, commercial and financial support. In addition, this transaction will enable Saft to successfully accelerate its development.”
Yann Duchesne, Chairman of Saft's Supervisory Board, added that the company is delighted with the agreement, which was unanimously approved by the Supervisory Board, thanks to its strong industrial rationale and its financial interest for shareholders.
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