(Alliance News) - Elementis PLC attracted takeover interest from a US private equity firm, which has since decided against tabling another offer, Reuters reported on Wednesday.
Citing people familiar with the matter, Reuters reported New York-based KPS Capital Partners LP submitted a 160 pence per share bid to the chemicals firm's board, which would have valued Elementis at GBP940.5 million.
However, Elementis wanted around 180p per share, implying a GBP1.06 billion valuation, according to Reuters.
https://www.reuters.com/markets/deals/us-fund-kps-explored-takeover-offer-uk-elementis-sources-2024-01-24/
Elementis shares shot up 7.9% to 133.80p in London in early dealings on Thursday, giving it a market capitalisation of GBP787.7 million.
Pressure on the London-based firm has built in recent months. Some shareholders last year called for an immediate sale of the company.
In September, Franklin Mutual Advisors LLC, an investment advisory firm parented by Franklin Templeton, published an open letter requesting that the Elementis board "initiate an immediate sale of the company".
Franklin, which holds roughly a 9% stake, said that while it was initially "impressed with Elementis's healthy market position", its more recent capital allocation decisions have caused "a shocking amount of shareholder value destruction".
It said Elementis has significant strategic value but is currently too small to accomplish its goals and would therefore benefit from merging with a larger company.
Odyssean Capital, which holds a roughly 3% interest, also said in September that Elementis should be put up for sale.
By Eric Cunha, Alliance News news editor
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Elementis (ELM)