28 May 1998: Soda Ash Investments of the UK, an acquisition vehicle with backing from CVC Capital, said that it has made an agreed 190p per share offer for Brunner Mond Plc, valuing the chemicals grou…
28 May 1998: Soda Ash Investments of the UK, an acquisition vehicle with backing from CVC Capital, said that it has made an agreed 190p per share offer for Brunner Mond Plc, valuing the chemicals group at about UK 145 million. The cash offer represents a premium of about 23.8% over Brunner Mond“s closing share price on 23 March, according to a recent press report. “Following the disappointing share price performance since flotation, CVC has arranged finance for SAI(Soda Ash Investments) to make an offer for Brunner Mond which the directors believe satisfactorily takes account of the current value of the company,” Eric Kinder, chairman of Brunner Mond, said in a statement. The group was formed in 1991 following the buy-out of the UK and Kenyan soda ash products businesses from Imperial Chemical Industries Plc. It floated on the London Stock Exchange in September 1996. “The CVC group has strongly supported the company since the buy-out from ICI in 1991 and funds advised by it have remained a significant shareholder since flotation in 1996,” said Kinder. CVC, a UK-based private equity investment advisor, said it feels that improved access to finances for Brunner will strengthen the company“s ability to participate in the current consolidation in the chemicals sector.