Merck KGaA won Versum board’s support for a $ 6.5 billion sweetened takeover offer, reversing an agreed merger with rival Entegris.
“This proposal constitutes a ‘Superior Proposal’ as defined in Versum’s previously announced merger agreement with Entegris, Inc.,” Versum said in a statement on Monday.
After reviewing business data and following meetings between Merck KGaA Chief Executive Stefan Oschmann and Versum Chairman Seifi Ghasemi, filings showed that Merck offered $ 53 per share, up from $ 48 previously.
Versum will owe $ 140 million in termination fees to its disgruntled partner if it is bought by Merck, filings showed.
Versum had previously rejected Merck’s offer, saying that it was committed to the merger agreed with Entegris.
Last month, Merck launched a hostile all – cash takeover offer to Versum shareholders – with a $ 5.9 billion price tag including debt to improve its share in the electronic materials market.
The increased Merck offer would be worth close to $ 6.5 billion, based on about $ 700 million in assumed Versum debt and about 109 million shares.
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