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Wattyl says it will take US paint-maker's offer

Fuseworks Media
Fuseworks Media

Wellington, June 28 NZPA - Trans-Tasman paint company Wattyl has accepted an $A142 million ($NZ175m) cash takeover bid from United States paint giant the Valspar Corporation, although the deal will have to be approved by New Zealand's Overseas Investment Office.

Valspar, which is listed on the New York Stock Exchange and one of the world's largest paint and coating companies, had agreed to pay $A1.67 for each Wattyl share.

Wattyl shares lifted A36c on the ASX -- a jump of 28.57 percent -- to $A1.62, the Sydney's Daily Telegraph reported.

Wattyl's board unanimously recommended shareholders vote in favour of the scheme and ancillary resolutions at the scheme meetings, in the absence of a superior proposal.

The offer is more than double Wattyl's closing price of A78.5c on May 24, the day before it received an indicative and non-binding proposal from Valspar at $A1.30 per share.

Wattyl employs about 2000 people on both sides of the Tasman, and has a number of well known brands including Taubman's in New Zealand, Solagard, Estapol, Killrust, I.D., Pascol and Solver. It is the major sponsor of the Lake Taupo Cycle Challenge.

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