Two major Aveva shareholders are opposing the proposed acquisition of Aveva by Schneider Electric. In their view, the bid of 11 billion euros (9.5 billion British pounds) is too low.
The two major shareholders, Mawer Investment Management and M&G Investments, consider the bid to be opportunistic. Both parties have announced that they will vote against the acquisition.
Low share value and exchange rate
According to the investors, Schneider Electric is taking advantage of Aveva’s share value, which is exceptionally low at this time. Schneider Electric offered to pay 34.45 euros (31 British pounds) per Aveva share.
Aveva recently issued a profit warning for the coming financial year due to deteriorating market conditions caused by the war in Ukraine and other macroeconomic circumstances. The profit warning affected Aveva’s stock market value.
In addition, the British pound recently lost value. Aveva’s shareholders noted that the exchange rate affected the acquisition bid as well.
Acquisition expected in 2023
Schneider Electric has been a majority shareholder of Aveva since 2017. Nevertheless, the complete acquisition requires the approval of all shareholders. Schneider Electric expects the acquisition to be finalized next year. Both companies will continue to operate independently.
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