The board of the listed German provider of meter reading and billing services relating to energy and water consumption said the offer was inadequate from a financial point of view. Moreover, Techem argued that it could not, “identify which resources and expertise Macquarie could make available to strengthen Techem”.
The finding will strengthen the case of the buyout firm
Also Techem’s board has known BC Partners for a long time: In 1996, BC Partners acquired a controlling stake in Techem from its family shareholders. BC Partners’ investment manager Stefan Zuschke continued to be on Techem’s supervisory board until August 2006. That is long after BC Partners had exited its investment in the course of an initial public offering and a secondary offering of Techem shares in 2001.
The latest offer is subject to the condition that a minimum acceptance level of 50.1% of all shares issued by Techem will be achieved.
In a framework agreement entered into with Techem BC Partners has agreed to far reaching covenants including the support for the existing strategy of Techem, the company’s corporate domicile and jobs.
BC Partners also wishes to hold on to Techem’s management, which appointed Merrill Lynch to defend it against the Macquarie bid