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July 18, 2018updated 13 Aug 2018 3:00pm

VTG Aktiengesellschaft rejects takeover bid from Morgan Stanley

German rail logistics company VTG Aktiengesellschaft has rejected a takeover bid from Warwick Holding, an indirect subsidiary of funds advised by Morgan Stanley Infrastructure.

German rail logistics company VTG Aktiengesellschaft has rejected a takeover bid from Warwick Holding, an indirect subsidiary of funds advised by Morgan Stanley Infrastructure.

Warwick, which already holds 29% of shares in the German company, made a public takeover offer for the shares it doesn’t already own at €53 ($61.97) apiece.

The proposed offering values the rail logistics company at approximately €1.5bn.

“As soon as we have received the offer document, we will examine in detail whether it is in the interest of the company, our employees and shareholders.”

VTG said in a statement: “In the company’s view, the offer does not reflect the fundamental value of VTG Aktiengesellschaft considering its future potential.”

VTG Aktiengesellschaft CEO Dr Heiko Fischer: “We are always open for constructive discussions with the bidder. As soon as we have received the offer document, we will examine in detail whether it is in the interest of the company, our employees and shareholders.

“From today’s perspective of the Executive Board, the announced offer price of €53 does not adequately reflect the potential of the company and is therefore not appropriate.”

Warwick Holding bought a 29% stake in VTG in October 2016. It made the offer after Kühne Holding agreed to sell its 20% stake in VTG Aktiengesellschaft to Warwick, effectively increasing its overall shareholding in the company to 49%.

The German rail logistics company currently manages a fleet of approximately 80,000 railcars and offers a full-range service that includes tank cars, intermodal wagons, standard freight wagons and sliding wall wagons.

VTG reported revenues of €1.01bn and operating profit (EBITDA) of €343m during the 2017 financial year.

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