Austria“s Radex-Heraklith (RHI AG) said it held 72% of Global Industrial Technologies“ common stock and was extending its friendly takeover offer by a week to meet anti-trust requirements.
“The ex…
Austria“s Radex-Heraklith (RHI AG) said it held 72% of Global Industrial Technologies“ common stock and was extending its friendly takeover offer by a week to meet anti-trust requirements. “The expiration date is being extended to permit RHI to complete divestitures of certain refractory manufacturing assets in order to comply with Federal Trade Commission (FTC) requirements for antitrust clearance,” the industrial fireproof materials maker said in a statement. As of 14 November, some 17.9 million GIT shares had been tendered under RHI“s US$ 13 per share cash offer, equivalent to around 72% of the US group“s outstanding shares. The US$ 300 million offer, announced in July and worth over US$ 500 million including GIT“s debt, was expected to expire on Monday, 22 November. RHI said the offer could be extended further if necessary to allow the FTC to complete its review. It said a purchaser had been found for the refractory assets but the sale was still subject to a due diligence review and purchaser board approval. “While RHI believes that the terms and conditions of the divestiture should satisfy the FTC“s requirements, there can be no assurance that the FTC will consent to the terms, or that RHI will be successful in completing the divestiture,” it said.