Geneva (awp) – The company JBF Finance, owned by the Bobst family, is launching a public tender offer for all the shares of Bobst Group in public hands. Through this operation, the fifth generation of the descendants of the packaging machine manufacturer’s founder will take control and ensure free rein for the next few years.
The buyer is offering 78 Swiss francs in cash per share, which represents a premium of 22% compared to the average price of the last four weeks. The board recommends accepting the offer, according to a statement from Bobst released on Monday. JBF Finance is already a shareholder of Bobst and owns 53% of the shares and voting rights.
JBF Finance, domiciled in Buchillon, is owned by some 60 shareholders who are descendants of the founder of the company Bobst.
“The members of the fourth and fifth generations of the family met at the beginning of the year and agreed on a common entrepreneurial project for the horizon 2030-3035”, explained to AWP Jean-Pascal Bobst, general manager of the homonymous company.
Those of the fifth generation, aged 20 to 42, have decided to go ahead and pursue the entrepreneurial adventure. “At some point, in a family, you have to decide. Either there is a life project or there is a divorce.”
Protection of strategic information
The heirs also recognized that in this context, privatization offered significant advantages over listing on the stock exchange. The administrative constraints are in fact less and the company spares itself the disclosure of a great deal of strategic information, indicated Mr. Bobst.
Finally, for employees and customers, privatization offers much more sustainability and stability than a structure held by investment funds, continued the CEO.
The privatization operation of Bobst, without a squeeze-out clause, however implies that Bobst’s shares will be discounted. “Employees and other shareholders who would like to remain shareholders would be welcome, but given that the share will no longer be listed, it will of course be more difficult to trade,” remarked Mr. Bobst.
At the management level, the company will continue to be steered by independent and family directors, the company says. This “undertakes to support the place of industry in Switzerland”. “As far as the company’s strategy is concerned, this operation does not change anything,” he said.
The offer period runs from September 20 to October 3, and the finalization is expected by early November.
Increase in order books
The company also published its half-year results, which took a back seat given the context of the takeover. It posted a clear all-round acceleration over the first six months of the year, but only partially managed to exceed market expectations.
Turnover jumped 15.7% to 772.5 million Swiss francs, while operating profit (Ebit) almost doubled to 28.6 million. In the first half, net profit group share reached 21.3 million, against only 3.6 million a year earlier.
Bobst also said it had recorded “strong order intake” in the first half, up 8%. The order book is “40% higher than the previous year”. Despite the uncertainties, the management of the Vaudois group has confirmed its financial objectives for the whole of the year.
“The offer price of 78 Swiss francs appears modest compared to our fair valuation estimate of 74 Swiss francs,” writes Walter Bamert of the Cantonal Bank of Zurich (ZKB). The delisting also comes as long-standing investments begin to bear fruit, as after years of belt-tightening, customers are now investing in modern processing technologies, the analyst further notes.
On the stock market, the Bobst stock jumped at the opening, even exceeding the offer price. At 10:09 a.m., it took 15.2% to 78.80.
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