Henderson-headquartered oil and gas equipment manufacturer Matrix Composites & Engineering has backed a $90 million takeover offer from Advanced Innergy Holdings.
Henderson-headquartered oil and gas equipment manufacturer Matrix Composites & Engineering has backed a $90 million takeover offer from Advanced Innergy Holdings, about a year after the bidder's first approach.
Matrix told the market it had entered a scheme implementation deed for Advanced Innergy Holdings (AIH) to acquire the company for 40 cents cash per share, after earlier non-binding proposals and an exclusivity deed.
The offer price represents a more than 66 per cent premium to Matrix’s last undisturbed share price in late March, and values Matrix at just shy of $90 million.
AIH had already struck a call option agreement with five Matrix shareholders to build a 19.9 per cent foothold in the target, subject to approvals.
The progression of the deal comes after Matrix thwarted AIH’s reverse takeover attempt designed to acquire Matrix and give the UK-based group a listing on the ASX last year.
Matrix rejected that scrip-based proposal, which it said would have left its shareholders with just 20 per cent of the combined group.
Matrix’s board has unanimously backed the 40-cents cash per share deal and is recommending a vote in favour of the scheme, in the absence of a higher offer.
It told the market that AIH had confirmed its 40 cent cash per share offer was its “best and final", in the absence of a superior competing proposal.
The scheme is expected to be implemented in July, should the deal gain shareholder and other regulatory approvals such as from the Foreign Investment Review Board.
“The proposed transaction recognises the strength of Matrix’s people, technology and manufacturing capability,” Matrix chair Peter Hood told the market.
AIH describes itself as a materials science technology company, which listed on the ASX after raising $150 million last year.
The bidder billed the acquisition as forming a key part of its strategy to build a market leading technical buoyancy and subsea ancillaries’ platform.
It added that the deal would enable it to establish a manufacturing presence in the Asia-Pacific region through Matrix’s Henderson manufacturing facility.
AIH chair Russell Ward said the transaction strengthened their global platform and delivered on its expansion strategy into the region.
It marks AIH’s second acquisition since it listed on the ASX, its first being a $17.7 million acquisition of Norwegian aquaculture technology firm Imenco Aqua.
Shares in Matrix last changed hands at 38.5 cents per share, up about 4 per cent.
