Transtasman paint company Wattyl has accepted an $A142 million ($NZ175 million) cash takeover bid from US paint giant Valspar Corporation, although the deal will have to be approved by the Overseas Investment Office.Valspar, which is listed on the New Yor
Transtasman paint company Wattyl has accepted an $A142 million ($NZ175 million) cash takeover bid from US paint giant Valspar Corporation, although the deal will have to be approved by the Overseas Investment Office.
Valspar, which is listed on the New York Stock Exchange and one of the world's largest paint and coating companies, has agreed to pay $A1.67 for each Wattyl share.
Wattyl shares lifted 36Ac on the ASX – a jump of 28.6% – to $A1.62, the Sydney's Daily Telegraph reported.
Wattyl's board unanimously recommended shareholders vote in favour of the scheme and ancillary resolutions at the scheme meetings, in the absence of a superior proposal.
The offer is more than double Wattyl's closing price of 78.5Ac on May 24, the day before it received an indicative and non-binding proposal from Valspar at $A1.30 per share.
Wattyl employs about 2000 people on both sides of the Tasman, and has a number of well known brands including Taubman's in New Zealand, Solagard, Estapol, Killrust, ID, Pascol and Solver.
It is the major sponsor of the Lake Taupo Cycle Challenge.
