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Janus Henderson Rejects Advent's U-blox Bid, Sees Higher Value in Defense Drones

Janus Henderson sees U-blox's future in defense drones. It's not happy with the current takeover bid.

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1 min read
This picture contains a box which is in red, orange and blue color. On the top of the box, we see a...
This picture contains a box which is in red, orange and blue color. On the top of the box, we see a robot and text written as "AUTOBOT TRACKS". In the background, it is black in color and it is blurred.

Janus Henderson Rejects Advent's U-blox Bid, Sees Higher Value in Defense Drones

Janus Henderson, a top-10 shareholder of U-blox Holding AG with a 5% stake, has expressed disappointment over U-blox's management accepting Advent's takeover bid without exploring other options. The investment firm believes Advent's valuation does not fully consider U-blox's growth prospects, particularly in the defence drone industry.

U-blox, a Swiss company specialising in positioning technology chips and modules for cars, drones, and consumer devices, has seen its shares close at 134.2 Swiss francs on Tuesday. Advent proposed to buy U-blox for 135 Swiss francs per share in cash, with the offer window set to run until Oct. 9.

Janus Henderson estimates U-blox's fair value to be approximately double Advent's offer price, based on the company's stated targets for the next couple of years. The investment firm is not opposed to considering a higher offer and believes U-blox's future growth, especially in automated driving and mobile robotics, is undervalued in Advent's bid.

Spectrum Entrepreneurial Ownership, an investment vehicle backed by billionaire Thomas Schmidheiny, holds approximately a 9% stake in U-blox. It has agreed to tender its stake in the takeover bid, while Janus Henderson has decided not to tender its shares.

U-blox's CEO has stated the company's focus is shifting towards automated driving and mobile robotics. Janus Henderson, a significant shareholder, is unhappy with U-blox's management accepting Advent's offer without exploring other possibilities. The investment firm believes U-blox's future growth prospects, particularly in defence drones, are not adequately reflected in Advent's valuation.

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