SPOILER ALERT!
Westlake Chemical announces unsolicited quote for Georgia Gulf
US-based petrochemical company Westlake Chemical Firm has announced a new unsolicited quote to purchase all exceptional shares in competitor Georgia Gulf Corp. following a stop to arrangements in between both business on a tieup that started on September 30.
In a statement issued Friday, Westlake revealed its offer of $30/share in cash for Georgia, which represents a 51% premium to the latter's 30-day volume-weighted average share price of $19.82.
Georgia Gulf had not been quickly offered for remark.
A source knowledgeable about firm procedure stated that "thus far is just a proposal and also not yet a done bargain."
In addition to the general public disclosure, Westlake sent out a letter to Georgia Gulf's board of supervisors educating them of its intent to go on with the procurement plans, despite effort by Georgia Gulf's monitoring to "unreasonably restrain [its] investors' capacity to prompt think about [Westlake's] proposition."
The parties last fulfilled on December 22.
"Because the initial delivery of our proposition on September 20, 2011, we have made numerous attempts to engage in meaningful dialogue with Georgia Gulf and have shared our willingness to discover, pursuant to a customary discretion contract, whether possibilities exist that would certainly justify raising our proposal rate. However, Georgia Gulf has actually been unwilling to give us with details that would allow us to check out these chances or to enter into substantive conversations," stated Westlake Head of state as well as Chief Executive Officer Albert Chao.
Westlake presently possesses roughly 4.8% of the impressive typical shares of Georgia Gulf.
www.irowater.com merging of the business would see the production of a significant North American olefins, vinyls and structure products producers, with raised range in the expanding international vinyls market and with extra development possibilities. The procurement would allow Westlake to reinforce its setting as a polyvinyl chloride resins producer and vinyl-based structure items provider, while likewise increasing its international item offerings.
In a statement issued Friday, Westlake revealed its offer of $30/share in cash for Georgia, which represents a 51% premium to the latter's 30-day volume-weighted average share price of $19.82.
Georgia Gulf had not been quickly offered for remark.
A source knowledgeable about firm procedure stated that "thus far is just a proposal and also not yet a done bargain."
In addition to the general public disclosure, Westlake sent out a letter to Georgia Gulf's board of supervisors educating them of its intent to go on with the procurement plans, despite effort by Georgia Gulf's monitoring to "unreasonably restrain [its] investors' capacity to prompt think about [Westlake's] proposition."
The parties last fulfilled on December 22.
"Because the initial delivery of our proposition on September 20, 2011, we have made numerous attempts to engage in meaningful dialogue with Georgia Gulf and have shared our willingness to discover, pursuant to a customary discretion contract, whether possibilities exist that would certainly justify raising our proposal rate. However, Georgia Gulf has actually been unwilling to give us with details that would allow us to check out these chances or to enter into substantive conversations," stated Westlake Head of state as well as Chief Executive Officer Albert Chao.
Westlake presently possesses roughly 4.8% of the impressive typical shares of Georgia Gulf.
www.irowater.com merging of the business would see the production of a significant North American olefins, vinyls and structure products producers, with raised range in the expanding international vinyls market and with extra development possibilities. The procurement would allow Westlake to reinforce its setting as a polyvinyl chloride resins producer and vinyl-based structure items provider, while likewise increasing its international item offerings.
