KUALA LUMPUR Oct 8 Austrian rubber and plastic
products maker Semperit Holding AG launched a $197.4
million cash offer for Malaysian medical glove maker Latexx
Partners Bhd, securing an initial 47 percent stake
from core shareholders.
The acquisition would give Sempirit access to Malaysia's
glove industry, a world leader due to its access to rubber, and
help it move towards its planned annual sales volume of 23
billion gloves by 2015, the company said.
"We gain a strong foothold in the Malaysian glove industry,
which is the most important production hub globally," said
Semperit Chief Executive Officer Thomas Fahnemann.
The global rubber glove industry, worth about $4.9 billion,
has consolidated in recent years, from 65 industry players
controlling 45 percent of world market share in 2000 to 40
players commanding some 63 percent in 2012, according to the
Malaysian Rubber Export Promotion Council.
Semperit offered 2.30 ringgit per share and 1.77 ringgit per
warrant, valuing Latexx, the world's sixth largest medical
gloves maker, at 512 million ringgit ($167.6 million) based on
its current shares outstanding.
The offer price represented a 28.5 percent premium to
Latexx's closing price on Friday, and was 37.7 percent above the
three-month volume weighted average price of Latexx's shares,
Latexx's chairman and chief executive Low Bok Tek had agreed
to sell his entire 29.3 percent stake in the firm and 35 million
warrants, while Semperit had also secured a 9.1 percent stake in
Latexx and 9.6 million warrants via put or call agreements with
other investors, it said.
On a fully diluted basis after the potential exercise of all
warrants, Semperit said it had secured a 47.3 percent stake in
Latexx shares were suspended on Monday.
Semperit said it did not intend to maintain Latexx's listing
($1 = 3.0545 Malaysian ringgits)
(Reporting By Yantoultra Ngui; Editing by Richard Pullin)