ZetaDisplay Target Of Takeover By UK Investment Firm

June 28, 2021 by Dave Haynes

Via Invidis

The German language digital signage publisher and consulting shop invidis is reporting that Swedish solutions provider ZetaDisplay – one of the larger players in Europe – is looking over a takeover bid from a UK investor.

Today, reports invidis, before the stock exchange opening, the London-based financial investor Hanover published a takeover to ZetaDisplay shareholders of SEK 27 (EUR 2.70) per share, valuing ZetaDisplay at EUR 72 million.

The listed ZetaDisplay was put up for sale at the end of March – just shortly after the takeover of Nordland. As a result, according to market rumors, numerous offers were received from strategic and financial investors. The board of directors and management recommend that shareholders accept Hanover Investment’s public offer.

The Hanover offer price means a premium of

• 68% off the closing price of ZetaDisplay common shares prior to the announcement of the search for an investor on March 30, 2021
• 27% in relation to the closing price of ZetaDisplay common shares on Nasdaq Stockholm on Friday June 24, 2021, the last trading day before the announcement of the offer; and
• 47% in relation to the volume-weighted average price for the common shares of ZetaDisplay during the period of 180 trading days prior to the announcement of the offer.

The acceptance period for the offer is expected to start on July 16, 2021 and end on September 3, 2021. The acceptance period can be extended. The completion of the offer is not tied to any conditions.

Florian Rotberg of Munich-based invidis says Hanover acquired nearly 40% of the of the shares from Zeta major shareholders by this weekend, so the takeover looks likely.

He suggests: Operationally, the new ownership structure will not bring any major changes for the time being. However, it can be assumed that ZetaDisplay will now be financially stronger and look even more actively for new takeover candidates.

ZetaDisplay has been evolving from a smaller, hyper-regional digital signage CMS software shop into a larger firm that has multiple titles, operates across several countries and goes beyond software into integration work. It has been growing via acquisition, so a takeover by an investment would in theory accelerate further growth.