Funds advised by Davidson Kempner European Partners, LLP ("DK") currently hold 11.4 million shares, equivalent to 3.8% of the total shares outstanding of AVEVA Group plc ("Aveva" or the "Company")
LONDON, Nov. 10, 2022 /PRNewswire/ -- DK believes the current price offered by Schneider Electric SE ("Schneider" or the "Acquirer") to Aveva's minority shareholders of £31 per share substantially undervalues the Company's long-term prospects. The timing of the approach by Schneider is highly opportunistic and comes on the back of a broader market decline as well as weakness in Aveva's own share price resulting from the transition to a subscription and SaaS model (Aveva had fallen 48% from the highs of £42 per share in September 2021 to £22 per share before the announcement of the Schneider approach in August 2022). The Company's transition has been widely perceived by the market to have been poorly executed and communicated under the stewardship of the current Aveva CEO, Peter Herweck, who has been on secondment from Schneider since May 2021. DK does not think the uncertainty around this transition reflects concern over the long-term value of the franchise, a view which is supported by Aveva management's own five-year targets (announced at the Capital Markets Day in June 2021). We share Schneider's belief that Aveva is a well-positioned business operating in a secular growth market with strong tailwinds. If Schneider wishes to secure full ownership of a strategic asset at such an opportune moment it should make an offer for Aveva at a price which provides minority shareholders their share of the long-term value.
- We share Schneider's belief that Aveva is a well-positioned business operating in a secular growth market with strong tailwinds.
- There are multiple datapoints which clearly indicate that 31 per share substantially undervalues Aveva.
- Aveva shareholders have clearly and publicly expressed dissatisfaction with the substantial discount that the current price represents for such an attractive software asset.
- The message from the market is quite clear and accordingly we expect the Scheme, on the current terms, to fail.