Nuplex bids for Aussie company

By Phil Boeyen, ShareChat Business News Editor

Monday 6th May 2002

Chemicals company Nuplex (NZSE: NPX) has announced a $57 million takeover bid for Australian-listed Asia Pacific Specialty Chemicals, which it plans to fund from an issue of capital notes.

Nuplex says the bid, at A70 cents per share, is 7.7% higher than the current offer by Symex Holdings Limited of A65 cents per share.

ASX-listed Symex announced its offer early last month as a replacement to a previously proposed merger with APSC.

Nuplex says its bid is for all shares on issue and will extend to include any new APSC shares that are issued during the offer period due to the exercise of existing options.

"The acquisition is consistent with the company's strategy to expand its business and maintain its position as Australasia's largest manufacturer of resins for coatings, adhesives, composites and paper, and distributor of other functional chemicals," Nuplex says.

"The acquisition of APSC will provide Nuplex with the opportunity to exploit new technologies and business segments, benefit from economies of scale in the performance chemicals sector, and maintain an internationally competitive cost position."

Nuplex MD, John Hirst, says the offer provides an opportunity for APSC shareholders to realise full value for their shares.

Nuplex notes that in the financial year ending December APSC had revenues of A$182 million but recorded an after tax loss of A$4.6 million due to restructuring costs and a highly competitive environment.

Mr Hirst believes that much of the restructuring necessary to return the company to profitability has already been undertaken or has been initiated by the current board of APSC.

"A merger between the two companies will deliver significant benefits for Nuplex shareholders and customers of the merged business.

"It will make a sound strategic fit with Nuplex and our merged operations will ultimately deliver higher earnings per share for Nuplex shareholders."

Nuplex plans to fund the acquisition from the proceeds of an underwritten issue of capital notes to New Zealand investors and from undrawn credit lines and cash resources. Details of the capital notes issue are yet to be advised.

The takeover bid is subject to a number of conditions including achieving a relevant interest in at least 90% of all APSC shares on issue.

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