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Recticel Rejects Kingspan Offer For Units, Open To Complete Takeover

LONDON (Alliance News) - Belgian mattress manufacturer Recticel NV/SA on Friday rejected an ...

Alliance News 26 April, 2019 | 9:27AM
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LONDON (Alliance News) - Belgian mattress manufacturer Recticel NV/SA on Friday rejected an unsolicited offer from Kingspan PLC for Recticel's Insulation and Flexible Foams divisions.

Recticel said the deal was not in the interest of its shareholders.

Recticel also confirmed it was approached by Kingspan over a potential acquisition of all of the outstanding securities of Recticel by means of a public tender offer at EUR10 per share, excluding the annual dividend for 2018.

The Belgian company remains open to engage with Kingspan to discuss a possible acquisition of all outstanding securities of Recticel, it added.

In response, Kingspan said: "Kingspan notes the statement from Recticel earlier today. We note the comments and views expressed and have nothing further to add."

The building material supplier earlier in April made a EUR700 million offer to acquire the Insulation and Flexible Foams divisions of Recticel.

Recticel said the offer from Kingspan "significantly" underestimates their standalone values and a number of other matters have not been reflected in the offer.

It would be an unattractive proposition for Recticel shareholders and employees given the lack of scale, the reduced strategic fit, financial flexibility, equity story and synergy potential between the two remaining divisions - Bedding and Automotive, Recticel said.

It added the sale of the two divisions would trigger regulatory risks and negative tax consequences.

Shares in Kingspan were up 0.1% at EUR45.78 per share on Friday morning.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Kingspan Group PLC 48.24 EUR -1.71 -
Kingspan Group PLC 48.24 EUR -1.63 -

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