15 September 2008 07:45 [Source: ICIS news]
MUMBAI (ICIS news)--Germany’s BASF plans to buy Switzerland's Ciba Specialty Chemicals for Swiss franc (Swfr)6.1bn ($5.5bn/€3.9bn) and Ciba's board has recommended that the owners accept the offer, BASF said on Monday.
BASF would pay Swfr50 in cash for each nominal share, which is a 32% premium over the closing price of Ciba shares on Friday, 12 September, and a premium of 64.3% over the volume-weighted average price of Ciba shares over the last 60 trading days, BASF added.
"Based on all outstanding Ciba shares and including all net financial liabilities and pension obligations, the enterprise value would be Swfr6.1bn," the company added.
"Integration into BASF will strengthen Ciba’s businesses through access to BASF’s global research, production and marketing platform, raw materials and intermediates," Ciba said.
"BASF and Ciba have reached a transaction agreement in which the board of directors of Ciba supports BASF’s attractive offer and recommends its acceptance to Ciba’s shareholders," the company said.
"Ciba strengthens BASF’s strategy and operations in the field of specialized chemical engineering through its leading innovation capabilities and application expertise in plastics additives, coating effects and water & paper treatment," it added.
The transaction further requires the approval of the responsible merger control authorities.
($1 = Swfr1.11/ $1 = €0.70)To discuss issues facing the chemical industry go to ICIS connect
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