(Alliance News) - Specialty chemicals firm Elementis PLC on Wednesday announced the rejection of a higher offer made by diversified resources firm Mineral Technologies Inc.
The company confirmed that on Tuesday Mineral Technologies had handed Elementis a revised cash offer of 117 pence per share a 9% increase from 107p first proposed in mid-November. With 580.8 million shares in issue, the deal values Elementis at GBP679.5 million.
"The board of Elementis considered the revised conditional proposal together with its financial adviser, Rothschild & Co, and concluded that the revised conditional proposal significantly undervalued Elementis and its future prospects. Accordingly, on 24 November 2020 the board of Elementis unanimously rejected the revised conditional proposal," the company stated.
Mineral Technologies still has until December 10 to make a firm offer for Elementis, or walk away.
Shares in Elementis were up 2.7% at 111.70 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Elementis (ELM)