American Axle & Manufacturing gets shareholder backing to buy Dowlais
Dowlais Group PLC suitor American Axle & Manufacturing Holdings Inc on Wednesday said its purchase of the London-based automotive engineering firm has moved closer to completion.
American Axle, a maker of driveline products and systems, said its own shareholders approved the acquisition at a meeting on Tuesday.
Dowlais shareholders will vote on the deal on Tuesday next week.
It accepted the takeover from American Axle in January. Shareholders stand to receive 0.0863 of a new AAM share, as well as 42 pence in cash and up to 2.8p in the form of a Dowlais final dividend.
Shares in Dowlais were down 0.7% at 71.26p in London on Wednesday morning for a market capitalisation of £935.5 million. American Axle shares closed down 0.8% at $4.78 in New York on Tuesday.
That makes the takeover offer worth about 75.8p per Dowlais share including the dividend.
At the time of the deal being struck, it implied a £1.16 billion value for Dowlais, which was spun off from Melrose Industries PLC back in 2023.
In May, American Axle said it would pursue a secondary listing of its shares in London after the purchase of Dowlais.
The US company said it believes it can achieve at least $300 million in annual run-rate cost synergies by the end of the third year after completion of the acquisition.
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