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(Alliance News) -Â Elementis PLC on Tuesday confirmed it rebuffed a takeover proposal from Innospec Inc.
Elementis noted Innospec's earlier Tuesday announcement and confirmed it received a conditional proposal at the end of March worth 160 pence per Elementis share. The proposal would have been satisfied in Innospec shares with a partial cash alternative available of up to 50% of the consideration together with a mix and match facility.
Shares in London-based Elementis closed 1.0% lower at 134.30 pence on Tuesday, having risen to a new 52-week high of 165.78p during morning trade.
Elementis said it assessed the approach and concluded that it "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," it added, with the board unanimously rejecting the proposal on April 9.
Sky News had reported late Monday that Innospec had made a written offer to Elementis worth 200p per share in cash and shares.
Innospec earlier on Tuesday confirmed it made a move for UK speciality chemical peer Elementis.
Innospec said the combination of the companies "would have created benefits for both sets of shareholders given the compelling strategic fit."
Elementis Chair Andrew Duff said: "The board of Elementis would always consider the merits of an engagement at a level that offers attractive value to its shareholders and that reflects the nature of its high margin activities with strong underlying growth prospects. However, having reviewed the conditional proposal from Innospec carefully, we are confident that the best value for shareholders will be delivered through the independent execution of our strategy and building on the encouraging start to trading in 2021."
By Lucy Heming;Â lucyheming@alliancenews.com
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