Daimler AG / Strategic Company Decision
30.04.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Daimler AG to acquire 22.3% equity interest from EQT
Daimler to participate in growth potential: protection of long-term
supply relations between Daimler and Tognum
Blocking minority stake targeted
Stuttgart - Daimler AG aims to acquire EQTs 22.3% equity interest in
Tognum AG and has entered into an agreement in this matter. The proposal on
this matter has been approved by the Supervisory Board of Daimler AG today.
Thanks to the optimized shareholder structure and the initial public
offering in 2007, Tognum AG has become a globally leading producer of
off-highway engines with above-average operating margins. As EQT indicated
its willingness to sell its stake in Tognum, Daimler will now be able to
protect its long-term supply relations with Tognum by taking over this
equity interest.
The price per share is 20.00. On this basis, the purchase price would be
approximately 585 million, making Daimler the largest shareholder in
Tognum.
Daimler has also arranged to acquire an additional nearly 1% of the shares
in Tognum.
In the short to medium term, Daimler aims to acquire a blocking minority
stake in Tognum. As a consequence of the equity interest, Daimler will
appoint two of the members of the Supervisory Board of Tognum in the
future.
The former Daimler AG disposed of its off-highway activities at the end of
2005 because the company then faced numerous operational challenges and was
about to consolidate its operations. This led to a focus on the core
business, and Daimler therefore did not want to make the substantial
investment required to improve Tognums competitiveness.
Daimler and Tognum continued their traditionally intensive cooperation also
after the sale of Tognum. For example, the Mercedes-Benz plant in Mannheim
supplied more than 17,000 diesel engines and the Detroit Diesel Corporation
plant in Detroit more than 5,000 diesel engines to Tognum in 2007. They are
used for example in agricultural machinery, industrial applications such as
cranes, pumps or snow cats, marine applications, as well as in power
generation systems. In particular, volumes in the fast-growing worldwide
industrial-agricultural market are to be further expanded in the future,
thus also making a contribution to the long-term supply with engines from
Daimler.
Tognum generates annual revenue of more than 300 million from sales of
engines from Daimler and an additional 160 million from sales of drive
shafts to Daimler.
Furthermore, Daimler and Tognum are currently discussing the possible
future supply of Daimlers new and technologically leading medium-duty
engine generation (MDEG) in the power segment below MTUs future new engine
Series 1600.
Tognum today is one of the worlds leading suppliers of off-highway engines
whose profitability could be improved significantly in recent years. In
2007, revenue increased by 12% compared with the prior year to 2.8 billion
and adjusted EBIT rose by 26% to 390 million. Adjusted return on sales
increased to more than 14% in 2007.
The transaction is to be completed in the third quarter of 2008 at the
latest, after receiving the approval of antitrust and other authorities.
Further information on Daimler is available on the Internet:
www.media.daimler.com
About Daimler
Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler
Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses,
is a globally leading producer of premium passenger cars and the largest
manufacturer of commercial vehicles in the world. The Daimler Financial
Services division has a broad offering of financial services, including
vehicle financing, leasing, insurance and fleet management.
Daimler sells its products in nearly all the countries of the world and has
production facilities on five continents. The companys founders, Gottlieb
Daimler and Carl Benz, continued to make automotive history following their
invention of the automobile in 1886. As an automotive pioneer, Daimler and
its employees willingly accept an obligation to act responsibly towards
society and the environment and to shape the future of safe and sustainable
mobility with groundbreaking technologies and high-quality products. The
current brand portfolio includes the worlds most valuable automobile
brand, Mercedes-Benz, as well as smart, AMG, Maybach, Freightliner,
Sterling, Western Star, Mitsubishi Fuso, Setra, Orion and Thomas Built
Buses. The company is listed on the stock exchanges in Frankfurt, New York
and Stuttgart (stock exchange abbreviation DAI). In 2007, the Group sold
2.1 million vehicles and employed a workforce of over 270,000 people;
revenue totaled 99.4 billion and EBIT amounted to 8.7 billion. Daimler is
an automotive Group with a commitment to excellence, and aims to achieve
sustainable growth and industry-leading profitability.
This document contains forward-looking statements that reflect our current
views about future events. The words 'anticipate,' 'assume,' 'believe,'
'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'project,' 'should' and
similar expressions are used to identify forward-looking statements. These
statements are subject to many risks and uncertainties, including an
economic downturn or slow economic growth in important economic regions,
especially in Europe or North America; the effects of the subprime crisis
which could result in a weaker demand for our products particularly in the
U.S. but as well in the European market; changes in currency exchange rates
and interest rates; the introduction of competing products and the possible
lack of acceptance of our products or services; price increases in fuel,
raw materials, and precious metals; disruption of production due to
shortages of materials, labor strikes or supplier insolvencies; a decline
in resale prices of used vehicles; the business outlook for Daimler Trucks,
which may be affected if the U.S. and Japanese commercial vehicle markets
experience a sustained weakness in demand for a longer period than
expected; the effective implementation of cost reduction and efficiency
optimization programs; the business outlook of Chrysler, in which we hold
an equity interest, including its ability to successfully implement its
restructuring plans; the business outlook of EADS, in which we hold an
equity interest, including the financial effects of delays in and
potentially lower volumes of future aircraft deliveries; changes in laws,
regulations and government policies, particularly those relating to vehicle
emissions, fuel economy and safety, the resolution of pending governmental
investigations and the outcome of pending or threatened future legal
proceedings; and other risks and uncertainties, some of which we describe
under the heading 'Risk Report' in Daimlers most recent Annual Report and
under the headings 'Risk Factors' and 'Legal Proceedings' in Daimlers most
recent Annual Report on Form 20-F filed with the Securities and Exchange
Commission. If any of these risks and uncertainties materialize, or if the
assumptions underlying any of our forward-looking statements prove
incorrect, then our actual results may be materially different from those
we express or imply by such statements. We do not intend or assume any
obligation to update these forward-looking statements. Any forward-looking
statement speaks only as of the date on which it is made.
DGAP 30.04.2008
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Language: English
Issuer: Daimler AG
Mercedesstraße 137
70327 Stuttgart
Deutschland
Phone: +49 (0)711-17 413 61
Fax: +49 (0)711-17 413 72
E-mail: ir.dai@daimler.com
Internet: http://www.daimler.com
ISIN: DE0007100000
WKN: 710000
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Hannover, München, Hamburg,
Düsseldorf; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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DGAP-Adhoc: Daimler AG: Daimler to become new key shareholder in Tognum
| Quelle: EQS Group AG