DuluxGroup board recommends Nippon Paint acquisition

Company News

by Katrina Bullock

The board of paint and coating provider DuluxGroup (ASX:DLX) has unanimously recommended an acquisition proposal valued around $3.8 billion from Nippon Paint Holdings.

Nippon proposes to acquire DuluxGroup via a scheme of arrangement for $9.80 per share in cash – that represents a 35.4 per cent premium on the 3 month volume weighted average share price.

Nippon Paint Holdings says that 'DuluxGroup will still be DuluxGroup' and they do not expect changes to DuluxGroup's leadership, business portfolio, manufacturing or operations. However the acquisition will allow DuluxGroup to pursue its growth ambitions, leveraging Nippon’s global scale and resources.

The Scheme is expected to be implemented in mid August 2019.

Shares in DuluxGroup (ASX:DLX) are trading 26.86 per cent higher at $9.73
  

Katrina Bullock

Finance News Network
Katrina joined FNN in 2018. She holds a Bachelor of Laws (Honours first class), a Bachelor of Business (Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She previously worked as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel for Greenpeace Australia Pacific.