Janus Henderson Said to Oppose Advent’s $1.3 Billion U-blox Bid

(Bloomberg) — Janus Henderson Group Inc. will not tender its shares in U-blox Holding AG for Advent’s 1.05 billion Swiss franc ($1.3 billion) takeover bid of the chip maker, according to people familiar with the matter.

Sources said Janus Henderson, a top 10 shareholder of U-blox with a 5% stake, was disappointed that the firm’s management accepted an offer from Advent without spending more time exploring strategic options. The asset manager estimates U-blox’s fair value will be twice Advent’s offering price, based on the firm’s targets for the next few years.

In August, Advent offered to acquire U-blox for 135 Swiss francs per share in cash, with the offer window expected to last until October 9. U-blox shares closed at 134.2 Swiss francs on Tuesday.

U-blox, which designs chips and modules for positioning technology used in cars, drones and consumer devices, recently spun off its loss-making cellular business. U-blox Chief Executive Stephan Zizalads said the company’s focus is shifting towards automated driving and mobile robotics.

Sources said the valuation did not adequately take into account the company’s future growth prospects, especially for drones in the defense industry. U-blox’s focus solely on its higher-growth positioning sensors business means the company has a better future, sources said.

Not all shareholders are against the deal. Spectrum Entrepreneurial Ownership, an investment vehicle backed by billionaire Thomas Schmidheiny, has agreed to put its approximately 9% stake to tender.

Janus Henderson is not opposed to considering a higher offer from Advent, sources say.

Representatives for Janus Henderson and Advent declined to comment, while U-blox did not respond to requests for comment.

–With help from Allegra Catelli.

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