Innospec drops pursuit for UK rival Elementis after takeover approach rejection (updated)
20/04/2021 17:02
(Adds details from Elementis statement)
April 20 (Reuters) - Innospec Inc IOSP.O said on Tuesday
it was no longer considering a possible offer for rival
Elementis ELM.L after the British company rejected a 160-pence
per share takeover approach from the U.S. chemicals firm.
Innospec said it had sought support from the London-listed
company's board for its offer that would have valued Elementis
at about 929.3 million pounds ($1.30 billion). urn:newsml:reuters.com:*:nRST0675Wa
Elementis on Tuesday confirmed that it received Innospec's
conditional cash-and-stock proposal on March 31, adding that it
significantly undervalued the company. urn:newsml:reuters.com:*:nRST0768Wa
The 175-year-old London-based company said the proposal was
less attractive for its shareholders as a substantial amount of
it was in the form of Innospec shares.
The news comes after Sky News on Monday reported that
Elementis received a fresh takeover bid from Innospec that
valued it at over 1 billion pounds, which sent shares of the
British firm soaring as much as 22%. urn:newsml:reuters.com:*:nFWN2MC0QV
Elementis shares, however, were trading down 0.9% at 134.3
pence by 1533 GMT. Innospec shares were down 2%.
($1 = 0.7164 pounds)
(Reporting by Yadarisa Shabong, Indranil Sarkar and Vishwadha
Chander in Bengaluru; Editing by Shinjini Ganguli and
Ramakrishnan M.)
((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa;
+919742735150;))