July 9, 2018 / 10:35 AM / 4 months ago

PAI lifts offer for Belgian diaper maker Ontex, gains access to books

LONDON (Reuters) - PAI Partners has raised its proposed takeover offer for Ontex (ONTEX.BR) and gained access to the Belgian diaper maker’s books, the private equity firm said on Monday, after its previous offer was rejected as too low.

PAI said its new offer was 27.5 euros per share, which would value Ontex’s total outstanding shares at 2.2 billion euros ($2.6 billion). The value of the initial offer was not disclosed.

The revised offer represents a nearly 42 percent premium to the shares’ closing price of 19.41 euros on July 5, the day before the initial approach became public.

Shares of Ontex, which also makes feminine care and incontinence products, were up 39 percent to 27.02 euros at 1120 GMT, as they resumed trading following a suspension on July 6.

Ontex declined to comment.

PAI said the revised offer was made on the basis of publicly available information and was conditional on its examination of Ontex’s books.

Ontex’s shares had fallen nearly 30 percent this year, as the company grapples with trouble in Brazil, rising input costs and increased competition.

Reporting by Martinne Geller; Editing by Mark Potter

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