GE Power Systems reported yesterday that its offer to purchase Jenbacher AG, a manufacturer of reciprocating engines for power generation, has been accepted.
Over 95 percent of Jenbacher's outstanding shares—90 percent were required—were tendered by April 25, 2003, the end of the offer period, paving the way for the company to complete its acquisition of Jenbacher AG.
According to the company, the offer contained three conditions: approval by regulators, no adverse changes in Jenbacher’s financial condition, and at least 90 percent of the shares had to be tendered. Rick Stewart, CEO of GE Aero Energy Products, the GE Power Systems business unit that Jenbacher will join, says, "Despite the global economic uncertainty, we are convinced of the partnership between GE and Jenbacher, and we plan to make Jenbacher GE's global center of excellence for gas engine products. Combining GE's sourcing network, sales and service channels with Jenbacher's existing operations will enable more rapid product development and sales growth, to the benefit of Jenbacher's employees."
Earlier this month, GE improved its offer to purchase all of the widely held shares of Jenbacher to EUR 18.10 per share. According to the company, all of the widely held shares, including those tendered prior to the price improvement, will receive the EUR 18.10 per share price. Those shareholders that have not yet tendered their shares can tender their shares within 10 trading days from announcement of the results, thus by May 14, 2003; they will also be paid the price of EUR 18.10 per share.
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