Umeco agrees acquistion deal, shares leap
Specialist engineering firm Umeco has received an offer from Cytec Industries' subsidiary Cytec UK Holdings, for the entire company.
Specialist engineering firm Umeco has received an offer from Cytec Industries' subsidiary Cytec UK Holdings, for the entire company.
Cytec and Umeco have agreed that the latter's shareholders will be paid 550p in cash per share, which values the entire company at around £274m.
The price represents a premium of around 46.3% to the closing price on April 11th.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company said that if the acquisition goes ahead, no final dividend will be paid.
Neil Johnson, Non-Executive Chairman of Umeco, said: "The board of Umeco believes that the offer from Cytec of 550p per Umeco share is an attractive price for Umeco shareholders, and represents a valuation that reflects the future growth potential of Umeco whilst providing certainty, in cash, to Umeco Shareholders."
The share price soared 47.21% to 553.50p.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
'We face a £6m inheritance tax bill under Reeves's changes – it's sheer terror'
Thousands of families fear they’ll have no option but to look at selling their firms in a fire sale to pay inheritance tax bills, due to Rachel Reeves’s changes to business property relief
-
Millions of over 50s fear pension investment risk – how should you position your portfolio?
To de-risk or not to de-risk, that is the question. Act too late and you could face irreversible losses. Move too early and miss out on significant gains that could transform your retirement.