Paint maker Wattyl Ltd
(ASX:WYL) has agreed to a $142 million takeover by US paint company Valspar Corp.
Valspar is listed on the New York Stock Exchange and is one of the world’s largest paint and coatings companies.
Under the proposed acquisition, Wattyl shareholders will receive $1.67 in cash per share.
The proposed acquisition will be implemented via a scheme of arrangement and is subject to a number of conditions including Wattyl shareholder approval and regulatory approval from Australia’s Foreign Investment Review Board and New Zealand Overseas Investment Office.
The Wattyl board says it unanimously recommends that shareholders vote in favour of the offer in the absence of a superior one.
Chairman John Ingram says the proposed acquisition enables shareholders to realise to realise cash for their Wattyl shares at a significant premium to recent trading levels.
Mr Ingram says Valspar is well positioned to support Wattyl for the next phase of its growth.
Wattyl posted a loss for fiscal 2009 after profits the two years previous.
