Shares of Elementis PLC (LON: ELM) soared nearly 12% today to record a new 10-month high after the company rejected an $819 million all-cash offer from Minerals Technologies.
The U.S.-based company said in the statement that it made a takeover offer for the British specialty chemicals company based on 107p per share. Elementis share price closed at 98p yesterday.
Elementis said it has “unanimously rejected” a takeover bid from Minerals Technologies after commenting that the submitted offer has “significantly undervalued” the company’s valuation.
Minerals, which produces a broad range of specialty mineral, mineral-based and synthetic mineral products, said it is now considering its position and future steps. The company reported sales of $1.8 billion in 2019. In October, Minerals reported that cash from operations was sitting at $54.3 million.
“Amid an upturn in overseas bidders targeting listed UK companies, I understand that FTSE 250 chemicals group Elementis received a takeover approach from the American private equity firm Lone Star Funds earlier this year; there are no live talks between them, however,” Sky New's Mark Kleinman commented.
Elementis share price is now trading at 106.80, very close to the offered price.
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