Allnex Belgium SA has proposed buying Nuplex Industries via a scheme of arrangement at a 44 percent premium to the New Zealand company's recent trading price, to create one of the world's largest makers of coating resins.
Allnex, which is controlled by private equity firm Boston, Massachusetts-based Advent International, would offer $5.55 a share for Nuplex, valuing the target at $1.05 billion. The price includes any dividends paid between now and settlement of the proposal, it said.
Nuplex said it had been in confidential talks with Advent and had initially turned down its offer, but after three revisions the price was now deemed to be attractive.
"After careful examination, the board of Nuplex considers the offer to be attractive for Nuplex's shareholders," the company said. "As the board believes engaging further with Allnex and Advent is in the best interests of shareholders, Nuplex is entering into advanced discussions and due diligence with the aim to agree a binding scheme implementation agreement."
As a result, Nuplex has granted Allnex and Advent a period of exclusivity for six weeks. Any transaction would then need to be voted on by Nuplex shareholders and the company urged them to take no action prior to receiving documentation and the board's recommendation.
