NIBC agrees to reduced takeover offer by Blackstone
Dutch bank NIBC has agreed to a proposed bid by Blackstone despite the private equity firm lowering its bid amid the pandemic.
The takeover values the bank at just over €1bn compared to €1.3bn previously. The US private equity firm cut its original bid to around €7 per share in May after it said the coronavirus crisis threatened to derail the bid entirely.
The two parties obtained unconditional approval from the European Commission. “As a result all competition clearances required to close the offer have been obtained,” NIBC and Blackstone said in a statement.
The buyout firm agreed in February to acquire NIBC but flagged “substantial uncertainty” in April due to the outbreak of Covid-19.
NIBC said its board unanimously recommended the new offer, as it still offered the best option. Majority shareholders JC Flowers and Reggeborgh, which together hold about 75 per cent of the bank’s shares, have promised to tender their shares at the newly agreed price.
NIBC and Blackstone intend to terminate the listing of the shares on Euronext Amsterdam as soon as possible, they said in a statement today.
In a statement today the parties said they “believe the sustainable and long-term success of NIBC will be enhanced under private ownership”. They also said they “acknowledge the importance of acquiring 100 per cent of the shares and achieving a delisting in order to execute on NIBC’s long term strategy.”
Blackstone has agreed to pay liquidated damages of €46m if the offer is not made or not declared unconditional. This also includes “if the required regulatory clearances are not obtained in certain instances.”
The payments consist of a payment of €4m to NIBC and a payment of €42m to all NIBC shareholders pro rata to their respective shareholding in NIBC.