Schneider aims for more of PDL

The electrical equipment and electronics manufacturer has instructed its New Zealand broker, Forsyth Barr, to take its holding in the company up to 19.99% following the completion of its market stand for 15% of PDL at $5.20.

Schneider is paying a $1.30 premium over Monday's closing price for PDL to grab a strategic shareholding in the company.

PricewaterhouseCoopers, which is advising Schneider, believes the offer is attractive to PDL shareholders because of the premium and because it represents a PE multiple of 15 times earning, exceeding the market average for mid-cap New Zealand industrial stocks.

Schneider operates in a number of business areas complementary to the existing electrical manufacturing and electronics businesses carried on by PDL.

It has other strategic investments in the Asia-Pacific region, and also has a presence here through its wholly-owned subsidiary, Schneider Electric (NZ), which does not operate in the same market segments as PDL.

If the company realises its 19.99% stake that will leave only around 10% of the company with investors other than PDL founder Sir Robertson Stewart and his wife, who have around 70% of the company's shares.

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