(Alliance News) - Elementis PLC on Monday said it has rejected a third takeover offer made by Minerals Technologies Inc, labelling the 130 pence per share offer "highly opportunistic".
Shares in the speciality chemicals company were trading 2.4% lower at 123.70p each in London in morning trading.
On November 5, Elementis received the first approach from mineral producer Minerals Technologies, proposing a purchase price of 107p per share. However, that proposal was rejected following a review by Elementis' board, management and advisers. A second proposal at 117p per share, received on November 24, was also rejected.
On Monday, the company said it received a revised proposal at 130p per share on Friday but said the board unanimously rejected the offer after a review concluded the proposal is highly opportunistic, coming at a low point of earnings and value, adding that the offer also significantly undervalues its future prospects.
"The proposal fails to recognise Elementis' high quality assets that merit a premium multiple. It is highly opportunistic, coming at a low point for the share price due to the impact of Covid-19 and the industrial cycle. The proposal is also significantly below the 2019 year end closing share price of 179p," it said.
"Elementis has refocused its business and built strong market positions in three high margin specialist sectors with strong underlying growth. We have a clear strategy to capture this growth and profitability and we are confident that this will deliver significant value for our shareholders. It is the quality of these businesses that has attracted Minerals Technologies. As a Board, we are fully aware of our responsibility to create and capture value for our shareholders, but this 'best offer' falls well short of that threshold for us to engage," Chair Andrew Duff added.
Separately, London-based Elementis stated trading in the fourth quarter of 2020 has continued to be resilient and in line with its expectations. It noted that while demand continues to be hurt by the pandemic, sales in October and November have shown progress compared to the third quarter.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Elementis (ELM)