Mexichem Makes Offer For Dutch Pipe Firm Wavin
Dutch pipe company Wavin said on Tuesday it had received a takeover offer from Mexico-based Mexichem, which also makes plastic pipe systems, sending its shares up more than 60%.
Wavin, which had a stock market capitalization of about €200 million at Monday's close, did not provide any financial details but said it would consider the indicative non-binding proposal.
"The management board and the supervisory board of Wavin have taken notice of recent movements in its share price. In response, Wavin announces that it has received an unsolicited indicative non-binding proposal from Mexichem for the acquisition of all outstanding shares of Wavin," it said.
Wavin is a leading supplier in Europe of plastic pipe systems used for tap water, heating and cooling, soil and waste. It reported net profit of €7.1 million on revenue of €1.231 billion in 2010.
Wavin said it has engaged Bank of America Merrill Lynch as financial advisor and Stibbe as legal counsel.
Mexichem is engaged in turning chemicals and petrochemicals into products used in the construction, agriculture and industrial sectors.
