Aveva Group shares a rocket as shareholder considers buyout
Aveva Group shares rocket 35% as French shareholder Schneider confirms it is considering buyout of FTSE 100 software company
- Schneider Electric already owns 59% of Aveva after a separate deal in 2019
- The company says it will remain committed to the UK and Aveva even if the deal is not agreed
Shares of Aveva Group skyrocketed on Wednesday after one of its largest shareholders confirmed it was considering a buyout of industrial software company FTSE 100.
Schneider Electric, which already owns 59 percent of Aveva according to MarketScreener, told investors it was considering an offer for the company headquartered in Cambridge.
Aveva Group shares were up 30.5% to £28.60 in early afternoon trading, after falling roughly the same percentage in the past 12 months.
Schneider took a significant stake in Cambridge-based Aveva . in 2019
The British company tried to assure investors of more positive times in June after an annual loss.
Aveva, which provides software to control and monitor oil rigs and nuclear power plants, represents a multi-year transition to the cloud and a subscription-based model.
Schneider Electric, a French multinational company specializing in digital automation and energy management, emphasized that no offer has been made yet and there may never be one.
It said: “Whether an offer is made or not, Schneider Electric remains committed to Aveva, to its agnostic and autonomous business model and to its employees.
“Schneider Electric believes that a full combination of Aveva and Schneider Electric’s software business will strengthen Aveva and enable it to accelerate its growth strategy.”
Schneider Electric combined its industrial software business with Aveva in 2019, with the original deal preventing the French company from increasing its stake for another two years.
It has until 5pm on September 21 to make a final offer.
Schneider Electric said: “The UK is one of Schneider Electric’s most important and strategic markets.
The UK company has a significant footprint, employing approximately 4,000 employees in multiple roles including manufacturing, R&D, sales and service at 14 locations across the country. Schneider Electric serves customers in many mission-critical sectors, including data centers, power grids, hospitals, critical buildings, industry, infrastructure and energy.
“The group is committed to ongoing investment and development of unique, innovative solutions for digital transformation, sustainability and energy transition for communities in the UK and around the world.”
Tuesday’s rally effectively reversed Aveva’s one-year losses