20th Apr 2021 15:41
(Alliance News) - US firm Innospec Inc on Tuesday afternoon confirmed it made an approach for UK speciality chemical peer Elementis PLC.
However, Innospec said Elementis turned the deal down, which was made at the end of March.
"This approach was rejected by the board of Elementis on April 9 and Innospec subsequently ceased active consideration on April 15," the Colorado-based company said.
"The approach sought the support of Elementis's board for a possible all share offer with a 50% cash alternative with a mix and match facility at a price of 160 pence per Elementis share."
London-based Elementis was trading 2.5% higher on Tuesday afternoon at 139.12p each, having risen to a new 52-week high of 165.78p during morning trade.
Sky News had reported late Monday that Innospec had made a written offer to Elementis worth 200p per share in cash and shares.
Innospec was 0.5% lower in New York in early trading at USD98.68.
Innospec said the combination of the companies "would have created benefits for both sets of shareholders given the compelling strategic fit."
"The proposal would have enabled Elementis' shareholders to share in future value creation substantially beyond the headline offer price through significant anticipated synergies and an expected re-rating of Elementis' business to Innospec's materially higher valuation multiple," Innospec continued.
By Paul McGowan; [email protected]
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