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Nuplex directors unanimously back takeover

NZN 10/04/2016 Paul McBeth

Nuplex Industries' independent directors are unanimously backing Allnex Belguim SA's $1.05 billion bid for the resins maker after the US-based firm completed its due diligence.

The companies have signed a scheme implementation agreement, which values Nuplex at $5.55 a share - a 44 per cent premium to where the shares were trading before the February 15 announcement.

The current price is $5.26, after it gained 3.5 per cent at Monday's open.

Nuplex's directors all support the bid, which requires 75 per cent approval in a special meeting likely to be held in August.

The recommendation is contingent on the $5.43 offer price, which excludes a 12 cent dividend, falling within or above the independent adviser's valuation range, and that a better offer doesn't emerge.

Managing director Emery Severin abstained from making a recommendation because of his executive role.

"The board believes Nuplex is well positioned to deliver growth in earnings, particularly from the platform now established in Asia and our new breakthrough technology, Acure," chairman Peter Springford said.

"However, delivering this growth will take some time and therefore shareholders may find attractive the opportunity to realise some of the future value of their Nuplex shares in cash now."

Allnex is controlled by Boston private equity firm Advent International, whose early advances to buy Nuplex were rejected. Those talks continued and Nuplex relented when the price became attractive, agreeing to a merger which will create one of the world's largest makers of coating resins.

The deal, which will remove the high-tech manufacturing firm from the NZX's list of top 50 stocks, has to be completed by Noember. 9 and requires regulatory approvals in New Zealand, Australia and China.

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