Charter mulls sweetened £1.6 billion bid from Melrose

Charter International Plc, the embattled Irish welding equipment manufacturer yesterday said that it is considering a sweetened £1.6 billion cash and stock bid from manufacturing buyout firm Melrose Plc.

The new cash and shares offer that is subject to financing and due diligence, values the Dublin-based company at £1.4 billion ($2.2 billion) or 840 pence a share.
 
The majority of the revised offer would be through the issue of Melrose ordinary shares with the balance paid in cash. Melrose would include a "mix and match" election within its proposed offer structure, allowing Charter shareholders to elect for more cash or more equity, depending on their and other shareholders' preference.

Last month, Charter rejected a 780 pence a share or £1.3 billion bid from Melrose, saying it was ''opportunistic and substantially undervalues the company and its prospects.''

Charter is registered in Jersey and listed on the London Stock Exchange, a constituent of the FTSE 250, but has its headquarters and tax residence in the Ireland.

Charter owns two international engineering businesses, ESAB, which is focused on welding, cutting and automation, which, accounts for about 65 per cent of group revenues, and Howden, which is focused on air and gas handling.

Charter is registered in Jersey and listed on the London Stock Exchange, a constituent of the FTSE 250, but has its headquarters and tax residence in the Ireland.