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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
