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UK Hg Capital makes E169m bid for German Wet Automotive Systems

UK-based Hg Capital has made a E169m cash offer for WET Automotive Systems, the car seat heating systems supplier formerly listed on Germany's defunct Neuer Markt.

The E52.7 per share recommended offer compares with yesterday's trading price of E52, according to the Financial Times. The share price has risen from E44 at the close of trading last week.

The transaction has an enterprise value of E175m including E6m of existing debt. Hg intends to invest E70m of equity and ING BHF-Bank will provide E120m in senior debt and mezzanine financing.

In order to comply with recent regulatory changes in Germany, Hg must secure 95 per cent approval from WET's shareholders in order to take complete control of the business. Bodo Ruthenberg, founding chairman of WET's supervisory board, has already agreed to sell his 66 per cent stake in the company to Hg.

If completed, this deal would represent Hg's second foray into Germany in six months. The firm acquired FTE Automotive from Dana Corporation for E150m in December last year.

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