Cidron’s bid for Munters runs into difficulty

Private equity group Cidron has failed to get 50 percent of owners to back its buyout of the Swedish humidity control firm Munters. Cidron, which is owned by private equity fund Nordic Capital VII Ltd, is now considering its position. Cidron had been in a bidding war with Alfa Laval, which offered 75 crowns per share, 5.55 billion Swedish crowns ($828.1 million), which beat Cidron’s first bid of 73 crowns.

(Reuters) – Private equity group Cidron said it failed to get 50 percent of owners to back a raised offer for Swedish humidity control firm Munters and said it would consider its position.

Earlier this month Sweden’s Alfa Laval topped Cidron’s first bid of 73 crowns per share, bidding 75 crowns per share in an offer worth 5.55 billion Swedish crowns ($828.1 million) for the humidity control firm.

In response, Cidron, owned by private equity fund Nordic Capital VII Ltd, said it had offered some of Munters’ institutional shareholders 77 crowns on the condition it got pledges for more than 50 percent of Munters’ stock.

It planned to make a public offer at that level if it won backing from over half Munters’ shareholders.

“During these discussions, Cidron has not been able to reach concrete agreements with shareholders representing over 50 percent of the the shares and votes in Munters,” Cidron said in a statement.

“Cidron … is therefore currently not prepared either to recall or change its offer and will give further information after having reviewed the situation.”

Munters’ board has unanimously recommended that shareholders accept Alfa Laval’s bid and two major owners — AB Industrivarden and Latour which own nearly 30 percent of Munters stock agreed to back Alfa Laval’s offer unless another party offered at least 78.75 crowns per share.

Cidron has said Nordic Capital Fund VII has 4.3 billion euros ($5.8 billion) in available capital from international investors.