Earlier this month the board of Elementis rejected an all-cash offer of 107p per share from the US ‘specialty minerals’ group.
New York-headquartered Minerals Technologies last night upped its possible cash offer 117p per share in a “preliminary conditional proposal”.
The Elementis board, which is led by British chair Andrew Duff and American chief executive Paul Waterman, said this revised proposal still “significantly undervalued” the business and its future prospects and so unanimously rejected the deal again.
While the US group said the increased proposal represents a premium of roughly 43% to Elementis’ closing share price on November 4 and a 61% premiun to Elementis’ 90 average price, the offer price is below where the shares have been for most of the eight years before the coronavirus pandemic.
The Elementis board has declined to enter into discussions with Minerals Technologies, the US company said, adding that it “hopes to engage…with the goal of proceeding to a recommended transaction that is highly attractive to Elementis' shareholders”.
It said it is “currently considering its position” but “there can be no certainty that any firm offer will be made”.
Elementis, which made US$874mln of revenue last year, is a major producer of talc and chromium, and makes most of its revenues from the personal care and coatings industries.
Minerals Technologies, which reported US$1.8bn of revenue last year, is focused on 'specialty minerals, minerals-based synthetic mineral products' and related services.
Shares in Elementis were up 1% to 110.4p on Wednesday morning.