The executive and supervisory boards at SAP Systems Integration AG have recommended to shareholders the offer from SAP AG to purchase all remaining shares of the services company.
By acquiring the slightly more than 5% of SAP SI shares it doesn’t already own, the German software giant hopes to fold the integrator into its internal consulting operation.
SAP currently owns slightly fewer than 95% of all SAP SI shares. The 95% mark is the exact level of ownership needed for a squeeze-out of remaining shareholders under German law.
Since it published its offer of $46.12 (39.30 Euros) per share on November 15, SAP has acquired another 0.45% or so of total shares. In a statement, SAP CEO Henning Kagerman said he expects the company to hold more than 95% of the stock when the offer expires and possibly sooner.
Although SAP SI management previously rejected the bid as too low, the company has now given the offer a favorable recommendation after an independent assessment from an accounting firm found the offer price to be attractive. However, until a squeeze-out, it is still up to individual shareholders whether or nor to accept SAP’s offer, the SAP SI boards said.