A $1 billion takeover offer for resins maker Nuplex from Belgian producer Allnex is the best going and shareholders should vote yes, Nuplex chairman Peter Springford says.
Allnex is offering $5.55 for each Nuplex share, including February's dividend, which was a 44 percent premium to the company share price before the offer emerged in February.
The two sides have now worked out the terms of the offer, which is being done as a scheme of arrangement and not under the takeovers code.
Mr Springford said it was a good offer, which was unanimously supported by the company's directors, and while Nuplex could look forward to strong growth in earnings it would take time to emerge and shareholders were probably better advised to cash in now at the best price going.
"Clearly we think it's an offer some shareholders will find attractive," he said.
He said under the scheme of arrangement, the offer must be approved by at least 75 percent of the votes cast and in addition those in favour must represent more than 50 percent of the total voting rights.
Mr Springford said depending on regulatory approvals, a vote could take place as soon as August.