31 August 2011 12:20 [Source: ICIS news]
Correction: In the ICIS story headlined "Rhodia shareholders accept Solvay’s €4.3bn bid" dated 31 August, please read the headline as "…Solvay's €3.4bn bid" instead of "…Solvay’s €4.3bn bid".
LONDON (ICIS)--Rhodia share and bond holders have overwhelmingly accepted Solvay’s tender offer for the Paris-headquartered speciality chemicals firm, the two companies said on Tuesday.
The success of Belgian chemical company Solvay’s €3.4bn bid for Rhodia creates a new major chemicals player with sales of €12bn ($17bn) and annual earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.9bn.
The French financial markets authority (AMF) said on Tuesday that 94.25% of Rhodia’s shares and voting rights had been tendered by the 24 August closing date of Solvay’s offer. The number of convertible bonds tendered was equivalent to 97.51% of the number outstanding.
Solvay said it aims to “squeeze out” the Rhodia shares and bonds not tendered.
In April, Solvay offered €31.60 per ordinary share and €52.30 for convertible bonds issued by Rhodia. The company reiterated the offer on 5 August.
The deal was valued at 7.3 times recurring EBITDA or 8.5 times if Rhodia's earnings from carbon credits were ignored.
Rhodia CEO Jean-Pierre Clamadieu has been named as the successor to Solvay's current CEO, Christian Jourquin, who retires next year.
“We have a shared vision in that we want to create a new group to achieve our goal of sustainable growth and development in chemistry,” Jourquin said at the time.
“We see the possibility of doubling our recurring EBITDA to almost €2bn and creating a major global chemicals platform under the banner of Solvay.”
The new company is expected to have a leading market position in certain engineering polymers and fluoropolymers, in consumer chemicals, silica and rare earth materials, hydrogen peroxide, soda ash and sodium bicarbonate.
($1 = €0.69)
For more on Solvay and Rhodia visit ICIS chemical intelligence
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