Daimler and Rolls-Royce secure support for Tognum Public Tender Offer - with 94 per cent of shares committed

Friday, 24 June 2011

  • Companies will create a leading industrial engine systems and solutions provider
  • 35.82 per cent of shares tendered during extended offer period
  • Excellent acceptance rate reflects overall attractiveness of the offer

Stuttgart/London – Daimler AG and Rolls-Royce Holdings plc are very pleased to announce that they have secured 94.17 per cent of shares in Tognum after their successful tender offer. During the extended offer period, further shareholders representing 35.82 per cent of Tognum’s share capital have tendered their shares into the offer made by the companies’ joint venture, Engine Holding GmbH. The final total of 94.17 per cent also includes the 1.52 per cent of the share capital (two million shares) that were acquired by the joint venture on the stock market during the earlier acceptance period. The high acceptance rate puts the companies in an excellent position to pursue its joint business objectives.

Bodo Uebber, Chief Financial Officer of Daimler, said: “We are very pleased with the final acceptance rate, which clearly underlines how successful we have been with our approach towards all stakeholders of Tognum, including its shareholders and employees. We will now focus on jointly further developing the business. We see great potential in this global market worth more than €30 billion a year and are dedicated to the joint venture’s future success.”

Andrew Shilston, Finance Director of Rolls-Royce added: “By combining the strengths, technology and market access of Daimler, Rolls-Royce and Tognum, the joint venture will establish a leading industrial engine systems and solutions company, offering a broad portfolio of products, services and integrated solutions on a worldwide basis.” The transaction is fully supported by the Supervisory and Management Boards of Tognum AG whose members have tendered their shares. Daimler and Rolls-Royce intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities.

The regulatory filing and approval process to satisfy the conditions laid out in the Offer Document is ongoing. The cash settlement of the transaction is expected for the third quarter after having received all relevant approvals.

  1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
  2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,500 marine customers, including 70 navies, and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines.
  3. Annual underlying revenues were £10.8 billion in 2010, of which more than half came from the provision of services. The firm and announced order book stood at £59.2 billion at 31 December 2010, providing visibility of future levels of activity.
  4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers.
  5. In 2010, Rolls-Royce invested £923 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions.
  6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company’s engineers with the forefront of scientific research.
  7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.

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