Fenner PLC Share News (FENR)

LONDON (Alliance News) - Fenner PLC said Monday it has agreed an all-cash takeover deal with Compagnie Generale des Etablissements Michelin SCA, valuing the company at approximately GBP1.20 billion.

Fenner is a manufacturer of industrial belting and other polymer-based products.

Michelin is to pay 610.00 pence per Fenner share, giving the GBP1.20 billion valuation. This compares to a market capitalisation of around GBP925.4 million based on its closing price on Monday of 477.64p. The stock ended 2.4% higher.

This price is a 31% premium to Fenner's closing price on Friday of 467.00p, and a 33% premium to the volume weighted average share price in the three months prior to Monday.

Further, Fenner said, its shareholders will receive an interim dividend of no more than 2.1p per share, which will be paid before the acquisition is completed.

Fenner's directors believe the offer to be fair and reasonable, and will unanimously recommend Fenner shareholders accept the deal.

Fenner Chairman Vanda Murray said: "Fenner has successfully established itself as a world leader in reinforced polymer technology and the board remains confident that Fenner's existing strategy would deliver significant value for Fenner shareholders as an independent company.

"However, we also believe that the terms of the acquisition acknowledge the quality of Fenner's businesses and the strength of its future prospects, and as such the board intends to recommend unanimously the acquisition to Fenner shareholders."