17th Feb 2016 07:35
LONDON (Alliance News) - KBC Advanced Technologies PLC said Wednesday it has agreed a deal to be acquired by Yokogawa Electric Corp in a deal that will value it at GBP180.3 million, trumping its previous deal with US software company Aspen Technology Inc.
KBC Technologies, a software provider for the oil and gas industry, had previously agreed a GBP158.0 million, or 185.00 pence per share, takeover by Aspen in January.
However, the new deal from Tokyo-based Yokogawa is at 210p, a 14% premium to the 185p offer from Aspen. KBC closed Tuesday at 183.38p per share.
As a result the KBC directors have unanimously withdrawn their recommendation for the Aspen deal and intend to recommend that KBC shareholders vote in favour of this new deal.
Yokogawa has received irrevocable undertakings to vote in favour of the deal from shareholders with an aggregate 41.9% stake in the company. It has been unable to obtain irrevocable undertakings from the KBC directors as their irrevocable undertakings with Aspen continue to be binding in the event of a higher competing offer, however, Yokogawa noted their total shareholdings amount to a less than 1.0% stake in the company.
"Yokogawa is a highly-respected international business and there is a strong strategic fit with KBC. We believe that Yokogawa will also provide KBC with all the advantages associated with being part of a larger, and better capitalised, group," said Chairman Ian Godden in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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