Wavin rejects Mexichem's improved offer

Wednesday, December 7, 2011

Dutch plastic pipe manufacturer Wavin has rejected an improved offer from Mexican chemical and petrochemical firm Mexichem (BMV: MEXCHEM) to acquire all outstanding shares of the company, the former said in a statement.

Last month, Mexichem presented an offer of 8.50 euros per share, which valued Wavin at 432mn euros (US$578mn). On Tuesday (Dec 6), however, Mexichem sweetened its bid to 9.00 euros, valuing the firm at 457mn euros.

The new offer still "materially undervalues the company and its prospects," Wavin said.

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"Future discussions are conditional on, amongst others, an offer price acceptable to the management board and the supervisory board as well as sufficient comfort on a number of non-financial terms of the non-binding offer," Wavin added.