July 20, 2018

German lessor snubs takeover offer

German rail wagon lessor and 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 following a deal in 2016, made a €53.00 ($62.00) per share public offer for the shares it doesn’t already own.

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

VTG management maintains that the offer “does not reflect the fundamental value of VTG Aktiengesellschaft considering its future potential,” following a soon-to-be-completed deal for CIT Rail Holdings, as well as a premium for the market price in the last several months.

VTG has a presence in Europe, North America, Russia and Asia and has a fleet of around 83,000 rail freight cars and wagons.

The company was formerly owned by WL Ross, the private equity group chaired by the now US Secretary of Commerce Wilbur Ross.