D-Day for UK tech champion Aveva as French takeover looms

The future of British technology champion Aveva will be decided today as votes are counted for a controversial takeover by French company Schneider Electric.

Aveva is one of the few major technology players on the London Stock Exchange alongside Darktrace, Sage and Softcat.

It has agreed a deal whereby Paris-based Schneider will buy the 41 per cent of the company it doesn’t already own for 3225p per share.

But the deal, which Aveva values ​​at £10bn, is on the line and needs shareholder support at a meeting to be held today.

If they approve, Aveva will be taken off the market, which is a blow to the UK’s credibility as a hub for innovative technology companies.

Jeremy Hunt has pledged to make the UK ‘the world’s next Silicon Valley’ by combining the country’s science and technology with its ‘formidable financial services’.

But the deal would represent an early setback to those plans. London has struggled to attract leading tech companies, despite repeated efforts by Tory governments over the past decade.

The Aveva acquisition requires the approval of at least 75 percent of minority shareholders in tomorrow’s vote.

Since Schneider cannot vote, it would only take about 10 percent of the total shareholder base to reject it to block the deal.

Jupiter, M&G Investments, Davidson Kempner and Canadian company Mawer have come out and publicly stated that they will vote against the deal.

Another top 20 investor has joined them, but would not be named.

Schneider and Aveva got engaged this week in a last-ditch effort to bolster support for the bid as it comes down to the wire.

And as a boost to Schneider, Aveva’s major shareholder, Dr. Patrick Kennedy, has backed the deal.

Kennedy acquired a 4.2 percent stake in the company when it bought his company Osisoft, a US rival of Aveva, two years ago.

The deal will see Kennedy take a massive £420 million windfall from his company.

For security reasons, concerns have also been raised about Schneider’s joint venture with Chinese conglomerate Delixi Electric.

Critics say that if Aveva is taken over, the patented technology risks falling into Chinese hands.

Aveva emerged from Cambridge University in the 1960s and provides software to help engineers design major industrial projects, as well as products that help run factories.