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
-
December premium bond winners revealed - have you won the jackpot?Two Premium Bond holders are now millionaires as NS&I reveals December winners. Find out if you’re one of them
-
Lloyds, Halifax and Bank of Scotland to shut another 45 branches
Lloyds Banking Group, which includes Halifax and Bank of Scotland, is set to close a further 45 branches in 2024 - find out if a branch near you is closing.
