(Updates with Mexichem comment in fourth paragraph, closing share price.)
Nov. 22 (Bloomberg) -- Mexichem SAB, the Latin American chemicals producer that has bought more than 15 companies since 2007, offered to buy Wavin NV to expand its plastic pipes business in Europe.
Wavin has hired Bank of America Merrill Lynch as an adviser and is assembling its board to “carefully consider” the offer, the Dutch sewer-pipe supplier said in a statement today. It didn’t provide financial details. Wavin shares rose 59 percent to 6.28 euros at the 5:30 p.m. close in Amsterdam, valuing the business at 319 million euros ($430 million).
“The management board and the supervisory board will carefully consider the indicative non-binding proposal and explore the rationale, merits and risks for all Wavin’s stakeholders,” the Zwolle, Netherlands-based company said in the statement.
Mexichem confirmed plans for a cash offer in a separate filing to the Mexican stock exchange. The company hired Barclays Plc and Citigroup Inc. as advisers, it said.
Mexichem’s acquisitions include last year’s $300 million purchase of AlphaGary, a thermoplastic compounds operation it bought in December, and purchases of Policyd SA and plastic tube maker Plasticos Rex SA.
Wavin reported first-half net income of 3.76 million euros.
--With assistance from Jonathan J. Levin in Mexico City. Editors: Andrew Noel, David Risser.
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