Drives and Controls Magazine

TCEP outbids Schneider to acquire Citect

01 January, 2006

A US equity investment firm, Thomas Cressey Equity Partners (TCEP), has outbid Schneider Electric to acquire the Australian industrial software supplier Citect. Citect`s board is recommending to its shareholders and options holders that they accept TCEP`s cash offer of $1.70 per Citect share, which represents a premium of about 10% over the $1.50 per share and $0.05 divided per share that Schneider offered when launching its takeover bid last October.

"TCEP`s proposal is welcomed by the Citect board," says Citect chairman, David Mortimer. "We intend to work with TCEP to ensure that this recommended proposal is presented to shareholders as soon as possible."

Citect`s directors have withdrawn a recommendation to shareholders to vote in favour of the Schneider bid at a meeting scheduled for 12 January. The directors want to adjourn this meeting to allow shareholders and option holders to consider the TCEP offer.

The new takeover deal is subject to several conditions, including a minimum acceptance level of 50.1%.

TCEP and its predecessors have made investments in around 200 companies and the firm currently manages around $1,750m of capital.

So far, there has been no official reaction from Schneider Electric to the new Citect announcement.