Enterprise Linux developer SuSE will be taken private and delisted from the Frankfurt stock exchange.
In 1994, SuSE established its own independent company and was one of the first Linux developers. It was acquired by Novell in 2004, Novell was acquired by Attachmate in 2010, and SuSE was spun off as an independent company by Micro Focus after acquiring Novell in 2014.
In 2018, EQT Partners, a Swedish private equity investment institution, acquired SUSE for US$2.535 billion, and it will be listed on the Frankfurt Stock Exchange in 2021.
Two years later, Marcel LUX III SARL (Marcel), the majority shareholder with a 79% stake in SUSE, is planning to take the company private and delist it from the exchange at a premium of around 67%.
SUSE will merge with an unlisted Luxembourg entity. Marcel currently owns 79% of SUSE, and existing SUSE shareholders who do not want to sell their shares can continue to invest in SUSE as a private entity.
In taking SUSE private, EQT Private Equity / Marcel proposed a price of about 16 euros per share, about 67% higher than today's share price.
SUSE's management board and supervisory board supported the company's delisting, which it said would allow SUSE to fully focus on its operational priorities and the execution of its long-term strategy.
To this end, SUSE has entered into a Transaction Framework Agreement (TFA) with Marcel to facilitate the transaction, including the payment of an interim dividend. The interim dividend will be paid to all shareholders prior to the close of the offer and will enable Marcel to finance its purchase of SUSE shares pursuant to the offer and certain transaction costs it incurs.