Australia’s Reliance Worldwide said on Wednesday it had agreed to a buyout bid worth about $2.9 billion from global investment firm Brookfield, but would continue to seek alternative proposals from other parties.
Brookfield made three approaches in the first half of the year before returning in August with a fourth, worth A$4.75 a share.
The companies had agreed to a “Go Shop” provision, allowing Reliance Worldwide to seek rival bids, share due-diligence materials and negotiate terms.
“The board is unanimous in its view that this transaction is in the best interests of RWC shareholders,” said Reliance Worldwide Chair Russell Chenu.
“The board has carefully assessed the proposal on a fundamental valuation basis, considering RWC’s strategic position, long-term growth opportunities and cash generation.”
Reuters
