ERJ staff report (TP)
Helsinki, Finland – Metso’s Board of Directors decided to reject a revised proposal from the Weir Group about a “potential business combination of the two companies”.
The Board said the proposal undervalues Metso and the value to shareholders of Metso continuing as an independent company pursuing its own growth strategy.
The revised proposal was based on an assessment of the value of Weir and Metso shares and proposed an exchange ratio of 0.95 Weir shares per Metso share, a small increase on the initial exchange ratio of 0.84 Weir shares.
In their revised proposal, Weir calculated that the proposal placed an implied value of €29.40 on Metso shares, based on the market price for Weir share and currency exchange rate on 19 May. This exchange ratio would imply an ownership of 40 percent in the combined company for Metso's shareholders, compared to 37.1 percent for the initial offer.
Metso is a “process performance provider”, with customers in the mining, construction, and oil & gas industries.
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Press release from Metso