MAN SE share prices rise
It was reported this week that Volkswagen has finally increased their shareholding in the company which have naturally sent shares of MAN SE sky high. They have reportedly risen by a staggering 9 per cent which takes trade to a staggering €85.03. During the mandatory takeover bid from Volkswagen, shares were offered to be purchased at €95 each.
In April of this year MAN investors received €2.30 per share. If Volkswagen had taken place before, those share prices would have been around €3.00 per share.
Volkswagen now own 75 per cent and have the right to dominate.MAN SE is a German company that develop trucks, coaches and buses. Volkswagen, Europe’s biggest car producers have upped their stake from 73.76 per cent to 75 per cent. This in effect allows shareholders to approve a domination agreement submitted by Volkswagen. Volkswagen would essentially have complete financial and strategic control over MAN SE.
A Volkswagen statement confirmed that there could be more developments like this in the future. The statement read “Volkswagen is keeping all options open to further shape an integrated commercial vehicles group going forward.”
Volkswagen currently has a similar agreement with their luxury car brand Audi. An annual payment is paid to Audi in order to match the standard Volkswagen dividend.
Martin Winterkorn, Volkswagen’s Chief Executive recently announced a major revamp in the company’s management team, with job roles in the truck division changing.
The development of Volkswagen upping their stake in MAN SE was widely expected as the German company hope to take on the world leaders of Daimler AG and Volvo AB. Currently those two are the biggest names in the truck market. The news has lead to speculation that Volkswagen are a step closer in making an alliance with Sweden’s Scania AB. This would provide Volkswagen with enough firepower to compete at the highest level amongst the likes of Daimler AG and Volvo AB.
Mr Winterkorn said the stake hike shows how the company are edging closer to meeting their goals. He said “This marks a further important milestone for achieving our joint goals in the commercial vehicles business.”