Dutch pipe manufacturer Wavin NV yesterday rejected Mexican plastic pipe maker Mexichem's €457-million ($610 million) sweetened offer as too low and ''unacceptable.''
The €9-a-share offer ''materially undervalues the company and its prospects,'' Zwolle, Holland-based Wavin today said in a statement.
Mexichem, a leading Latin American plastic pipe maker, today raised its acquisition offer in order to gain ''friendly'' support to buy Wavin as it seeks to become the world's biggest plastic pipe maker with total sales of around €4.01 billion.
On 23 November, Mexichem, based near Mexico City, made an indicative non-binding proposal to buy its European rival Wavin, in a cash deal that would value the Dutch company at about €8.50 per share or €430 million. (See: Mexican plastic pipe maker Mexichem bids $580 mn for Dutch rival Wavin)
Mexichem is now offering €9.00, representing a premium of 137 per cent to the closing price of Wavin on 18 November, the Mexican firm said in a statement.
Along with the improved offer, Mexichem said it will retain a separate operating structure with headquarters in the Netherlands and maintain the Dutch company's supervisory board with joint representation, including a majority of members nominated by Mexichem.