First Reserve, SK Capital offer $45 per share TPC group acquisition

First Reserve, SK Capital offer $45 per share for TPC group acquisition

11:13 AM, 9th November 2012
First Reserve, SK Capital offer $45 per share for TPC group acquisition

HOUSTON, US: First Reserve Corporation and SK Capital Partners, have entered into a revised merger agreement with TPC Group Inc. As per the revised offer, First Reserve and SK Capital have increased the per share price to acquire all of the outstanding shares of TPC to $45 in cash. The revised price represents a 12.5 per cent increase over the previously agreed price of $40 per share announced on August 27, 2012.

The transaction, which is fully financed and is expected to receive its final regulatory approval by November 15th, could be completed shortly after the TPC shareholder meeting.

The transaction is an attractive value for TPC shareholders. Two of TPC’s largest shareholders, QVT Fund and One East Partners, which together represent over 21 per cent of the outstanding common stock, have signed voting agreements in support of the transaction.

In light of the revised merger agreement terms, TPC Board terminated discussions with Innospec and Blackstone concerning the previously announced non-binding expression of interest to explore an acquisition of TPC at a price of $44-$46 per share.

First Reserve and SK Capital noted that the binding offer from Innospec and Blackstone, did not materialize as it lacked strategic merit and potentially transfers control to Blackstone. Also there is less strategic fit between Innospec and TPC. Further, no deal with Innospec/Blackstone could close until 2013 due to, among other things, their need to complete due diligence, arrange financing and receive regulatory approvals.

© WOC News 




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