logo
Plus   Neg
Share
Email

LCY Chemical Agrees To Be Acquired By KKR-led Consortium

LCY Chemical Corp. and global investment firm KKR announced the signing of a share exchange agreement for a consortium led by KKR to acquire all of the issued and outstanding shares of LCY for TWD 56 per share in cash, adjusted to include a TWD 2.90 per share dividend, ex-dividend offer price is TWD 53.10 per share.

The transaction, which has been unanimously approved by the board of directors of LCY upon the recommendation of its Audit Committee comprising independent directors, represents a total market capitalization of approximately TWD 47.8 billion or US$1.56 billion.

The offer price represents a premium of 17.28% to LCY's closing price on 20 July 2018, the last trading day prior to the transaction announcement. It also represents a premium of 19.2%, 23.0% and 24.3% over the 30-day, 90-day and 180-day average closing prices, respectively.

Founded in 1965, LCY is a producer of specialty chemicals with a concentration on thermoplastic elastomers and performance plastics used in infrastructure, health care, household, automotive, textile and electronic products, among other diverse applications.

LCY will maintain its corporate headquarters in Taipei, its existing global distribution and sales networks and its production plants in Taiwan, mainland China and the United States.

Immediately following consummation of the share swap, KKR will hold a majority and controlling interest in LCY. The KKR consortium includes participation by the Company's current employees and certain members of the Founding Family.

The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions and regulatory approvals. Upon the completion of the transaction, LCY will become a private company, and its shares will no longer be traded on the Taiwan Stock Exchange. KKR and its partners are committed to supporting LCY's global expansion and will evaluate a range of options to support the Company's strategy, including capital market activities in Taiwan.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT