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Allnex's Nuplex takeover delayed

NZN 20/07/2016 Fiona Rotherham

Global resins maker Nuplex Industries says the planned $A1 billion ($NZ1b) takeover by Allnex is now not likely to take place in August as previously advised because of delays getting anti-trust clearance in the European Union.

In a statement to the stock exchange, Nuplex said the Phase 1 European Commission application is likely to be re-filed by the private equity-backed Belgian company next week.

It said it would provide further updates to shareholders when it is "in a position to advise further".

Earlier this month Nuplex shareholders voted in favour of a scheme of arrangement that would see Nuplex, founded in New Zealand 64 years ago, pass into Allnex's hands. A hearing to get New Zealand High Court approval of the scheme is being held on Thursday.

Under the original timetable, Allnex was expected to get EU anti-trust clearance by early August and the last day of trading in Nuplex shares was to be mid to late August when shareholders would be paid out.

Because the acquisition will not be completed by August 2 as planned, the company has to pay shareholders a compensatory dividend of 0.075 cents per share daily in addition to the $5.43 per share cash offer.

The deal was made under the first scheme of arrangement of a significant size in New Zealand since law changes were made in 2014.

Nuplex shares fell 0.8 per cent to $5.25.

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