Jul. 1 at 10:56 AM
$AGCO Agco announces settlement agreement with Tractors and Farm Equipment
Agco announced it has entered into a set of agreements with Tractors and Farm Equipment. The agreements resolve all outstanding disputes and other matters related to the commercial relationship between Agco and TAFE as well as TAFE's shareholding in Agco, ownership and use of the Massey Ferguson brand in India and certain other countries, and other key governance issues between the parties. All commercial agreements between Agco and TAFE will be terminated, with agreed wind-down provisions. Ownership of the Massey Ferguson brand will rest with TAFE on an exclusive basis in India, Nepal and Bhutan.
All ongoing legal proceedings will be terminated. TAFE has agreed to participate in future share repurchase programs that AGCO executes but retains the right to maintain but not exceed its current ownership level of 16.3%. TAFE has agreed to customary provisions governing its shareholding in Agco, including voting its shares in accordance with the recommendations of Agco's board of directors on all proposals at Agco's shareholder meetings, subject to certain agreed limited exceptions.
Parties have agreed to mutual non-disparagement and TAFE not engaging in public activism. TAFE will no longer be entitled to nominate a representative to the AGCO board of directors and Agco's director on TAFE's board will step down. TAFE will repurchase AGCO's current shareholding in TAFE for an aggregate amount of
$260M, subject to compliance with applicable law.
The agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE.
