Mexichem SAB de CV over the weekend raised its indicative all-cash takeover offer for Wavin NV to €505 million ($659.79 million), in a move that gained the Mexican plastics pipe and chemicals maker access to its Dutch rival's books to commence due diligence.
Delta Lloyd, Wavin's biggest shareholder, which holds 7.9 per cent of the company, welcomed the move, but said that Wavin's board should hold out for more.
On 22 November, Mexican, a leading Latin America plastic pipes and chemicals maker made an indicative non-binding proposal to buy its European rival Wavin for €8.50 per share, a deal that valued the Zwolle, Netherlands-based company at about €430 million ($580 million).
After having rejected the offer, the Mexican company earlier this month improved the offer to €9 a share. Mexichem has now upped its offer by 11 per cent and is paying two and a half times Wavin's share price of €3.96, when it made its initial offer.
Although it gave access to its books after Mexichem sweetened its offer, Wavin said, ''Wavin and Mexichem intend to continue discussions on the terms of a potential offer by Mexichem, however, at this stage no assurance can be given that these discussions will result in a transaction and whether or not the Wavin Boards will come to a recommendation of an offer by Mexichem.''
Based near Mexico City, Mexichem is the biggest chemical company in Mexico and one of the largest in Latin America. The company operates in North, Central and South America, Europe and Asia and exports its products to more than 50 countries.