W. R. Grace Rejects 40 North Takeover
US specialty chemical company W. R. Grace has rejected a takeover offer by shareholder 40 North Management, stating it “undervalues the company and is not a basis for further discussion.” The offer at $60 per share valued Grace at $4 billion.
40 North is Grace’s largest shareholder with a stake of about 15%, according to Bloomberg data.
“We believe this proposal to take the company private represents the most credible path to unlock value for the company and its shareholders with a high level of certainty,” 40 North principals David Millstone and David Winter wrote in a Nov. 9 letter to Grace’s board.
In response, Grace said it has a portfolio of high-value, specialty businesses and while end markets have been significantly impacted by the coronavirus pandemic, its business fundamentals remain strong and demand trends continue to improve. The company added that it has “often pursued opportunities to maximize shareholder value and remains open to all opportunities.”
Grace also stated that it was “focused on executing its long-term strategy and advancing its key investments to accelerate growth, improve its competitive advantages and strengthen its portfolio.”
40 North, as part of investment vehicle White Tale, was instrumental in scuppering Huntsman’s $20 billion takeover of Clariant in October 2017.
SABIC eventually scooped up White Tale’s shares in Clariant in January 2018, representing roughly a 24.9% stake in the Swiss specialty chemicals firm.
The Saudi petrochemicals giant subsequently raised its stake in the Swiss firm to 31.5% in March 2020.
Author: Elaine Burridge, Freelance Journalist
