Public tender offer for all outstanding u-blox shares
On 17 August, u-blox, the Swiss chip and module designer, and US private equity firm Advent International announced they had reached agreement on a cash offer of CHF 135 per share for all outstanding u-blox shares.
In May of this year we informed you about the positive strategic developments at u-blox and the company's upcoming (cyclical) recovery. These positive developments did not escape Advent International's attention either. We had always taken into account that u-blox was a potential takeover candidate, given its market leadership in an attractive niche within the semiconductor industry.
The offer of CHF 135 per share represents a 32% premium over the volume-weighted average share price of the past three months. The transaction is supported by management, the Supervisory Board and the largest shareholder. The main condition for completing the transaction is a minimum acceptance of 67% of the shares. The transaction is also subject to approval by the relevant regulatory authorities. u-blox's management expects the transaction to be completed within the next six months.
Midlin NV has held a stake in u-blox since October 2021 (7.5% of the portfolio before the offer). At the offer price, Midlin realises a return of 130% relative to its average purchase price, or 39% per year. The takeover price represents a (high) multiple of 45x EV/EBIT (2026), and is above our valuation.
For further details, please refer to the press release: u-blox.com — press release
With the proposed acquisition of u-blox, this is the second transaction in the Midlin portfolio within a short period involving a private equity firm. Earlier this year, we sold our stake in Nexus to TA Associates. This confirms our conviction that attractive small- and mid-cap companies listed on European exchanges also enjoy considerable interest from private equity.
This is a marketing communication. Please consult the prospectus of Midlin and the key information document before making an investment decision. Midlin, as a constructive and engaged shareholder, holds stakes in European listed companies. Midlin is included as an investment institution in the register maintained by the Dutch Authority for the Financial Markets (AFM).
This is a marketing communication. Please consult the prospectus of Teslin Participaties, Gerlin Participaties and Midlin (the 'Funds') and the key information documents before making an investment decision. Teslin Participaties, as a constructive, engaged and active shareholder, holds substantial stakes in Dutch listed companies. Gerlin Participaties, as a constructive, engaged and active shareholder, holds substantial stakes in German listed companies. Midlin, as a constructive and engaged shareholder, holds stakes in European listed companies. The Funds are included as investment institutions in the register maintained by the Dutch Authority for the Financial Markets (AFM). For more information on material risks for the Funds, see the prospectuses and key information documents.
