DGAP-News

SHW AG: Joint statement by the Management Board and the Supervisory Board pursuant to Section 27 (1) German Securities Acquisition and Takeover Act published

DGAP-News: SHW AG / Key word(s): Statement/Offer SHW AG: Joint statement by the Management Board and the Supervisory Board pursuant to Section 27 (1) German Securities Acquisition and Takeover Act published 24.07.2017 / 12:39 The issuer is solely responsible for the content of this announcement. SHW AG: Joint statement by the Management Board and the Supervisory Board pursuant to Section 27 (1) German Securities Acquisition and Takeover Act published

- Management Board and Supervisory Board of SHW AG recommend not to accept the offer from Pierer Industrie AG

- The price offered does not appropriately reflect the expected substantial improvement in margins and earnings

 

Aalen, 24 July 2017. The Management Board and the Supervisory Board of SHW AG today published their joint statement pursuant to 27 (1) German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetzes - WpÜG) on the voluntary takeover offer of Pierer Industrie AG. In the statement, the Management Board and the Supervisory Board substantiate their opinion that the offer of Pierer Industrie AG of EUR 35 per share for all outstanding ordinary shares of SHW AG in circulation is not appropriate from a financial perspective. Consequently, they recommend that the shareholders of SHW AG should not accept the offer.

In the view of the Management Board and the Supervisory Board, the financial consideration offered does not appropriately reflect the value of the company which SHW can generate from its own resources. With its strategy "SHW 2020", the company has laid the groundwork over the last eighteen months for a substantial boost in sales and earnings from the year 2018 onwards. The measures undertaken to improve operating excellence are having a tangible impact and a substantial EUR 30 million investment programme to internationalise pump activities has commenced. In the period to 2020 sales are expected to rise by approximately 50 per cent from the 2017 baseline and a significant improvement is expected in both margins and earnings. As a result, the Management Board and the Supervisory Board are of the opinion that the SHW share bears substantial upside potential.