Axiall rejects unsolicited proposal from Westlake

Axiall rejects unsolicited proposal from Westlake

9:16 AM, 1st February 2016
Axiall rejects unsolicited proposal from Westlake
Timothy Mann, president and CEO of Axiall Corporation. (File photo)

ATLANTA, US: Axiall Corporation said that it has rejected an unsolicited and conditional proposal from Westlake Chemical Corporation to acquire all of the outstanding common shares of Axiall for a consideration of $20 per share in the form of $11 in cash and 0.1967 shares of Westlake stock.

Axiall board of directors, with the assistance of its financial and legal advisors, reviewed, considered and unanimously rejected the proposal within the timeframe requested by Westlake.

“We believe that Westlake’s proposal is an opportunistic attempt to take advantage of challenging public equity market conditions and significantly undervalues Axiall’s assets and its long-term prospects,” said Timothy Mann, president and CEO, Axiall.

“The price of Axiall stock was at $20.18 as recently. We remain committed to achieving our $100 million run rate cost reduction and productivity target by the end of 2016, as well as our investment in the LACC ethane cracker project with our joint venture partner Lotte Chemical. In addition, we are continuing to evaluate our entire portfolio of businesses and assets to identify opportunities to enhance shareholder value, including our sales process for the building products business,” he said.

Morgan Stanley & Co LLC is acting as financial advisor to Axiall and Jones Day is acting as legal counsel.

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