Vitesco shares rose 19.8 per cent on Monday morning on news that its largest shareholder Schaeffler AG (SHA_p.DE) will launch a tender offer valuing the powertrain supplier at 3.64 billion euros ($3.83 billion). EV components maker Schaeffler AG, controlled by Germany's billionaire Schaeffler family, already holds 49.9 per cent of Vitesco, which has seen its shares rise 39 per cent this year.

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Schaeffler shares were down 6.6 per cent at 0713 GMT.

Schaeffler said it would offer remaining shareholders 91 euros ($95.83) per share, a fifth above last week's closing price.

The offer, which Schaeffler expects to close by January 2024, will not be subject to a minimum acceptance rate, it added.

"With the business combination, a leading motion technology company with four focused divisions and revenues of approximately 25 billion euros will be created," the company said.

The transaction could lead to 600 million euros in "sales and cost synergies" by 2029, Schaeffler said in its statement, adding it plans to simplify Vitesco's shareholder structure.

Listed preference shares are to be converted into ordinary shares, and the remaining shareholders will be on an equal footing with the family holding ordinary shares.

Vitesco was not immediately available for comment.