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Dec 5 (Reuters) - Shareholders of chemical manufacturer TPC Group Inc approved the sale of the company to private equity firms First Reserve Corp and SK Capital, after Innospec Inc withdrew its bid earlier this week.
TPC Group said its shareholders in a meeting on Wednesday voted in favor of First Reserve Corp and SK Capital Partners's $45 per share offer, which values the company at about $705 million.
TPC had repeatedly recommended that its shareholders vote in favor of the deal with the two firms, citing Innospec's inability to close the deal this year, among other things.
Innospec pulled its $745 million offer on Monday, saying it was in the best interests of its investors to do so.
"TPC Group is a great company that is well positioned as its markets continue to evolve as a result of increasing supplies of North American shale gas and associated liquids," said Jack Norris, a managing director of SK Capital.
What makes TPC attractive is butadiene, analysts say. The chemical -- a by-product of ethylene production -- is used to make synthetic rubber for tires and other automotive products.
Analysts predict a long-term shortage of butadiene as ethylene producers shift from naphtha to cheaper ethane, which yields lesser butadiene.