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Elementis Announces Revised Agreement For Acquisition Of Mondo Minerals

Elementis plc (ELM.L) announced the terms of a revised agreement with Advent Mondo (Luxembourg) S.à r.l. in relation to the proposed acquisition of Mondo Minerals Holding B.V. Under the terms of the revised agreement, Elementis has agreed revised terms which value Mondo at $500 million on a cash free, debt free basis. The consideration payable on completion will be paid in cash. The terms of the acquisition announced on 29 June 2018 valued Mondo at $600 million on a cash free, debt free basis.

Elementis proposes to finance the acquisition and associated expenses through a combination of the proceeds of a fully underwritten rights issue to raise total gross proceeds of the pounds sterling equivalent of approximately $230 million, or Rights Issue, and by utilising a new $775.0 million term and revolving credit facilities agreement. The Rights Issue will be made on the basis of 1 new ordinary share at 152.0 pence per new ordinary share for every 4 existing ordinary shares. Pursuant to the Rights Issue, Elementis is proposing to offer up to 116,044,829 new ordinary shares by way of rights to qualifying shareholders.

Under the terms of the revised agreement, the acquisition is expected by the Directors to be accretive to adjusted earnings per share in the first full year following completion, excluding any benefit other than modest pre-tax cost synergies.

by RTTNews Staff Writer

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