Elementis PLC, a British speciality chemicals company has rejected Minerals Technologies Inc’s all-cash buyout offer as the valuation for the company of $819 million was too low.
The offer would represent a premium of 31% to Elementis’s closing price of 81.70 on November 4, the day before the approach. With 580.8 million shares in issue, the approach values Elementis at $819 million.
“The board of Elementis considered the conditional proposal together with its financial adviser, Rothschild & Co, and concluded that the conditional proposal significantly undervalued Elementis and its future prospects. Accordingly, on 10 November 2020 the board of Elementis unanimously rejected the conditional proposal,” says Elementis.
Minerals Technologies has until December 10 to either announce a firm intention to make an offer for Elementis, or walk away.
Minerals Technologies says it is currently considering its position.
“There can be no certainty that any further proposal or firm offer will be made, nor as to the terms of any further proposal or firm offer. However, any offer would be likely to be solely in cash,” Minerals Technologies says.
Founded in 1844, Elementis makes additives that go into products in the consumer and industrial markets, including personal care, coatings, chromium, energy and talc.