HOUSTON (ICIS)--WR Grace entered into a letter agreement with 40 North on Monday, after it announced its decision to discuss a sale to 40 North’s upped bid of $65 per share, the US-catalyst producer said.
Under the confidentiality agreement, 40 North agreed to refrain from taking certain actions in respect to WR Grace and the common stock of the company until 31 March.
WR Grace can still accept offers to acquire the company.
In addition, the catalyst producer agreed to provide 40 North with the opportunity to nominate director candidates to the Board of Directors.
40 North can nominate candidates for the company’s 2021 annual meeting, scheduled to be held on or before the 15th day following the expiration of the standstill agreement.
If 40 North nominates a candidate on or before the deadline, following the expiration of the standstill they will hold the meeting 60 days from the date of the nomination notice.
WR Grace produces catalysts that are used to make fuel and polypropylene (PP).
40 North is a privately held investment firm that is part of Standard Industries and owns a 14.9% stake in WR Grace. Standard Industries describes itself as the world's largest roofing and waterproofing manufacturer, with other businesses that make building materials.
WR Grace and 40 North did not immediately respond to a request for comment.