05 December 2013 11:06 [Source: ICIS news]
LONDON (ICIS)--Germany-based chemicals producer Merck Group is to acquire Luxembourg-headquartered specialties company AZ Electronic Materials for around £1.6bn (€1.9bn, $2.6bn) in cash, the company said on Thursday.
Investors in the London-listed company, which produces chemicals used in the manufacture of integrated circuits and flat panel displays, will receive 403.5 pence per share. The figure represents a premium of 53% on the company’s closing price on 4 December, Merck added.
AZ Electronic’s directors, who have been advised by Rothschild, unanimously intend to recommend the offer to the company’s shareholders, and have given irrevocable commitments to offer up their shares in the deal, according to Merck.
Completion of the acquisition is contingent on regulatory approval and a minimum acceptance level of 95% of AZ Electronics shares.
The acquisition will allow Merck’s specialty chemicals division to increase its presence in the high-margin electronics space beyond the display industry, according to executive board chairman Karl-Ludwig Kley.
“The combination will enable Merck to access additional growth areas in the electronics industry to benefit even better from the increasing demand for electronic devices beyond displays,” he said in a stock market filing.
Goldman Sachs and UBS are acting as joint bookrunners on the acquisition, Merck added.
($1 = €0.74, €1 = £0.83, $1 = £0.61)
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