Allnex's A$1b takeover of Nuplex delayed
Planned takeover not likely to happen in August.
Global resins maker Nuplex Industries [NZX: NPX] says the planned A$1 billion takeover by Allnex is now not likely to take place in August because of delays getting anti-trust clearance in the European Union.
In a statement to the stock exchange, Nuplex says the phase 1 European Commission application is likely to be refiled by the private equity-backed Belgian company next week. It says it will provide further updates to shareholders when it is "in a position to advise further."
Earlier this month Nuplex shareholders voted in favour of a scheme of arrangement that would see Nuplex, founded in New Zealand 64 years ago, pass into Allnex's hands. A hearing to get New Zealand High Court approval of the scheme is being held today.
Under the original timetable, Allnex was expected to get EU anti-trust clearance by early August and the last day of trading in Nuplex shares was to be mid- to late-August when shareholders would be paid out.
Because the acquisition will not be completed by August 2 as planned, the company has to pay shareholders a compensatory dividend of 0.075c per share daily in addition to the $5.43 per share cash offer.
The deal was made under the first scheme of arrangement of a significant size in New Zealand since law changes were made in 2014.
Nuplex shares fell 0.8% to $5.25.
(BusinessDesk)
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Fiona Rotherham
Thu, 21 Jul 2016
Thu, 21 Jul 2016
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Allnex's A$1b takeover of Nuplex delayed
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