Merck extends AZ Electronic takeover offer, 40% take-up by deadline

23 January 2014 11:02  [Source: ICIS news]

LONDON (ICIS)--Germany-headquartered chemicals and pharmaceuticals producer Merck said on Thursday that it has extended the takeover offer for AZ Electronics after acceptances for its £1.6bn cash bid undershot the necessary level by the first closing date.

Merck said that its 403.5 pence per share offer for the company had received acceptances equivalent to 39.8% of the Luxembourg-based specialties producer’s existing share capital by the first deadline of 22 January, far below the 95% threshold for the takeover to go through.

The bid price represents a 53% premium on AZ Electronics’ closing share price on 4 December, the day before the takeover bid was announced. The offer has been extended until 5 February, and the offer price has not been increased. Shares tendered in the offer so far include those held by the company’s directors, Merck added.

The acquisition of AZ Electronics, a producer of specialty chemicals for the electronics market, would allow Merck to increase its presence in the high-margin electronics space beyond the display industry, executive board chairman Karl-Ludwig Kley said at the time of the takeover announcement.

AZ Electronics produces materials used in integrated circuits, flat panel displays and light-emitting diodes.

The deal is subject to regulatory approval if the 95% offer threshold is met, Merck added. Goldman Sachs and UBS are acting as joint bookrunners on the deal, and the acquisition is being pursued through Merck 15. Allgemeine Beteiligungs-GmbH, an indirect wholly-owned subsidiary of Merck.

By: Tom Brown
+44 208 652 3214

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