Solvay launches cash offer for Rhodia shares at €31.60/share

14 June 2011 18:58  [Source: ICIS news]

LONDON (ICIS)--Belgium-based Solvay has launched a cash offer for the shares of French chemicals maker Rhodia at €31.60/share, the company said on Tuesday.

The offer represents a 50% premium over the closing Rhodia share price on 1 April, the company added.

Solvay said the offer values Rhodia's market capitalisation at €3.4bn ($4.9bn) with an enterprise value of €6.6bn.

“This transaction will give the two companies the resources they require to pursue their track record of innovation and as such to meet their future industrial and technological challenges,” said Christian Jourquin, Solvay CEO.

"The launch of the Solvay offer gives Rhodia shareholders the opportunity to properly value their investment, while also contributing to the creation of a major chemical group,” Jourquin added.

“I am convinced that thanks to Rhodia shareholders' confidence and support, we will be able to write a new page in the history of our two companies,” said Jean-Pierre Clamadieu, Rhodia chairman and CEO.

($1 = €0.69)

By: Franco Capaldo
+44 (0)20 8652 3214

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