Lock maker Tyman's (LSE:TYMN) management has agreed to a takeover by larger US peer Quanex Building Products Corp (NYSE:NX) for £788 million.
Under the agreed offer, shareholders in the London-listed company will receive 400p in cash and shares or can choose an all-share offer.
The main offer comprises 240p cash and 0.05715 of a new Quanex share for each share they own and based on a closing share price of US$34.64 last Friday is worth 160p.
Under the alternative offer, a proportion Tyman (LSE:TYMN) shareholders can elect to receive just shares at a ratio of 0.14288 of a new Quanex share to every one Tyman (LSE:TYMN) share.
Only up to 25% of the Tyman shares will be able to receive this all-share offer.
Based on the latest price Quanex price, the offer represents a premium of roughly 39.6% to Tyman's last closing ex-dividend price of 286.5p on Friday, or a premium of roughly 40.5% to the six-month average price.
Tyman's directors have unanimously recommended the offer and Quanex has received an irrevocable undertaking from 16.4% shareholder Teleios Capital Partners.