November 29, 2016 / 10:25 AM / 2 years ago

Braas Monier to raise capital, pay special dividend in bid to fend off takeover

FRANKFURT (Reuters) - German roof tile maker Braas Monier BMSA.DE announced a capital increase and a special dividend on Tuesday as it seeks to fend off a hostile takeover offer by U.S. group Standard Industries [GAFCO.UL].

Family-owned Standard Industries has offered 25 euros per share in cash for Braas, valuing the group at $2.1 billion including debt.

Braas opposes the offer, saying it undervalues the company, and has called on shareholders to reject the bid.

Braas said on Tuesday it would issue 3.9 million new shares to its shareholders before Dec. 23, when Standard Industries’ offer runs out, which will make it more expensive for the U.S. group to take over Braas.

In addition, Braas promised to pay shareholders who hold onto their stock, rather than selling it to Standard Industries, an additional dividend of 0.57 euros per share early next year.

Both measures together effectively raise the bid price to 28.13 euros per share from 25 euros per share, Braas said.

Shares in Braas Monier were 6.5 percent higher at 27.25 euros by 0929 GMT, their highest level in about 11 months.

The company already announced last month a hefty increase in its annual dividend to 0.70 euros from 0.40 euros as it sought to persuade its shareholders not to sell their stock.

Reporting by Maria Sheahan; Editing by Susan Fenton

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