Schweitzer-Mauduit edges up takeover offer for Scapa Group

UNITED KINGDOM (From news reports) -- Scapa Group PLC said Monday that AMS HoldCo 2 Ltd, a subsidiary of paper materials manufacturer Schweitzer-Mauduit International Inc, has upped its offer for the Manchester-based maker of medical devices and industrial adhesives.

AMS has increased its offer by 2.4% to 215 pence per share, valuing Scapa at GBP412.6 million. Scapa was trading flat at 212.00p each on Monday morning.

The pair had previously agreed terms for a cash offer for Scapa at 210 pence per share, that valued the firm at around GBP402.9 million.

AMS stressed Monday its final offer price will not be increased.

"The Scapa directors, who have been so advised by Jefferies as to the financial terms of the revised offer, consider the terms of the revised offer to be fair and reasonable," the company added.

Scapa also noted it is not in discussions with any third parties regarding an alternative proposal.

It continued: "The Scapa directors believe that the revised offer represents compelling value given the balance of future opportunities and risks facing the business, limited capital market liquidity resulting in share price volatility and provides an opportunity for Scapa shareholders to crystallise, in cash, the value of their holdings at this attractive, increased final offer price of 215 pence per scheme share."

In its 2020 financial year, which ended on March 31 last year, Scapa made a GBP51.0 million pretax loss on revenue of GBP320.6 million due to exceptional charges.

Schweitzer-Mauduit is a product engineering and manufacturing company with its global headquarters in Alpharetta, in the US state of Georgia.

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