The hostile takeover of Finnish plumbing-equipment maker Uponor Oyj heated up on Monday after Aliaxis SA increased its offer to €1.9 billion ($2.1 billion).
(Bloomberg) — The hostile takeover of Finnish plumbing-equipment maker Uponor Oyj heated up on Monday after Aliaxis SA increased its offer to €1.9 billion ($2.1 billion).
The development comes after Uponor rejected a €1.8 billion bid from Brussels-based Aliaxis in April, saying the €25 per-share cash offer was too low. Despite the rejection, Aliaxis has continued to increase its stake in Uponor, quadrupling its holding in a month, while reiterating its long-term interest in the Finnish company.
Aliaxis is now offering €25.75 a share for the Vantaa-based company in an all-cash public tender offer, it said in a statement. The increased price represents a premium of 35.5% compared to the highest closing price of Uponor’s shares during the 12 months ended April 14.
Uponor’s shares gained as much as 1.4% to €26.76 when trading started in the Finnish capital.
“Joining our teams and operations makes industrial and financial sense and creates value for all stakeholders and a strong Uponor as a part of Aliaxis,” Chief Executive Officer Eric Olsen said.
Aliaxis’s offer must clear an acceptance threshold of more than 50% of the outstanding shares in Uponor. However, completion of the deal does not need a recommendation from the Finnish company’s board. Uponor declined to comment on the latest offer when contacted by Bloomberg News.
Earlier this month, Uponor said that it had started talks with other potential suitors after rejecting Aliaxis’s hostile bid.
Aliaxis said it does not see any “material substantive issues” in obtaining the necessary regulatory approvals and expects to complete the tender offer early in the fourth quarter. The company will finance the offer through a combination of own funds and external debt.
Read More: Aliaxis Boosts Uponor Stake to 20% Amid Opposition for Takeover
(Updates with offer details, CEO comment, share price.)
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