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"The Board concluded that the Conditional Proposal significantly undervalued Elementis and fell meaningfully short of the value creation potential for Elementis shareholders based on Elementis' existing strategy. In addition, the substantial element of the consideration being in Innospec shares made this Conditional Proposal less attractive for Elementis shareholders. The Board's assessment is supported by the strong momentum in the business and by an encouraging start to 2021.
Accordingly, on 9 April 2021 the Board unanimously rejected the Conditional Proposal."
How I look at it: if a company is looking to outright buy the company at 160p, then the company is valued at more than 160p.
136p is a bargain, and this will rightfully re-rate to compare to offer price.
Well it certainly looks llike a deliberate leak to enable the suitor to make a statement and the bod to come under pressure - dirty tricks but who fights fare in the M and A field?
Well certainly looks like we are hot property at the moment.
2 offers in 6 months from different companies at vastly different prices.
To be honest I'm not sure how a share offer would have worked given it would be shares in a US company.
I'd rather just have the cash.
But that being said, clearly this is a well thought after company. All my current holdings of this share have been top sliced anyway so I can afford to wait as literally any price is a profit for me.
Will be interesting to see at what level the dividend is reinstated (when it does).
cant see a revised offer from Innospec., it say they not interested now?>As a result of the rejection, Innospec is no longer currently considering this acquisition.
Now we wait for a revised offer or another suitor
ELM waiting for more?
Press Speculation Regarding Possible Offer for Elementis plc (“Elementis221;) GlobeNewswire - Apr 20 09:22:40.125 EDT Alert hits:Key Symbols: NASDAQ-NMS:IOSP ENGLEWOOD, Colo., April 20, 2021 (GLOBE NEWSWIRE) -- Innospec Inc. (“InnospecR21;), a global speciality chemicals company, notes the recent speculation with regard to a potential offer for Elementis plc. On 31 March 2021, an approach was made by Innospec to the Board of Elementis. This approach was rejected by the Board of Elementis on 9th April 2021 and Innospec subsequently ceased active consideration on 15th April 2021. The approach sought the support of the Elementis Board for a possible all share offer of 160p per Elementis share with a maximum 50% cash alternative with mix and match facility. As a result of the rejection, Innospec is no longer currently considering this acquisition. Innospec believes 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 the Elementis business to Innospec’s materially higher valuation multiple. Innospec remains highly focused on delivering value for its own shareholders. Innospec will only pursue transactions which meet its investment criteria and where it is appropriate to do so, taking into account the importance of maintaining a prudent capital structure under current economic conditions. This is a statement to which Rule 2.8 of the Code applies.