SUSE To Flip Back Into Private Ownership

Two years after being listed on the Frankfurt Stock Exchange, the Linux-for-enterprise company SUSE is switching back to private ownership. The Register reports: On Wednesday the developer announced that its majority shareholder, an entity called Marcel LUX III SARL, intends to take it private by delisting it from the Frankfurt Stock Exchange and merging it with an unlisted Luxembourg entity. Marcel is an entity controlled by EQT Private Equity, a Swedish investment firm, which acquired it from MicroFocus in 2018.

The announcement offers scant detail about the rationale for the delisting, other than a canned quote from SUSE CEO Dirk-Peter van Leeuwen who said, “I believe in the strategic opportunity of taking the company private — it gives us the right setting to grow the business and deliver on our strategy with the new leadership team in place.” Van Leeuwen took the big chair at SUSE just over three months back, on May 1. The deal values SUSE at 16 euros per share — well below the 30-euro price of the 2021 float, but above the Thursday closing price of 9.605 euros.

Interestingly, Marcel is happy for shareholders not to take the money and run. “There is no obligation for shareholders to accept the Offer,” explains the announcement’s detail of the transaction’s structure. “EQT Private Equity does not intend to pursue a squeeze-out. Therefore, shareholders who wish to stay invested in SUSE in a private setting may do so.” Shareholders who stick around will therefore score their portion of a special dividend SUSE will pay out as part of this transaction. Those who sell will get the aforementioned 16-euros per share, less their portion of the interim dividend. The transaction to take SUSE private is expected to conclude in the final quarter of 2023.