Multinational chemical company Royal DSM NV is seeking a 51 percent stake in Taiwan’s AGI Corp (新力美) through a private placement and a public tender offer, expanding its footprint in the ultraviolet (UV) paint and ink system markets.
With the acquisition of a controlling stake in the Neihu (內湖), Taipei City-based AGI, which produces UV curable resins and other products, DSM aims to strengthen its UV technology platform, the Dutch company said in a statement.
“This expansion in UV paint and ink system markets will allow DSM Resins to realize its ambition to become the global leader in sustainable and innovative resins,” DSM Resins president Dimitri de Vreeze said in the statement.
UV paint and ink systems have a low eco-footprint and operational costs. AGI’s UV curing chemicals and other plastics additives are used in coatings for paper, wood, plastic and various graphic arts applications.
The share purchase will cost DSM about 48 million euros (US$63.4 million) and requires the approval of AGI shareholders and regulatory agencies, the statement said.
AGI said in a stock exchange filing yesterday that a wholly owned DSM subsidiary would buy 6.35 million new common shares of AGI at NT$40 per share through a private placement and buy another 29.29 million AGI shares on the open market with an offer of NT$57 per share.
Meanwhile, a group of shareholders owning about 16.4 percent of AGI shares have agreed to tender their shares to DSM, the Dutch company said.
“The tender offer and the private placement are mutually conditional upon each other,” AGI deputy general manager Huang Ke-ming (黃克明) said. “However, the deal could be terminated within six months if it fails to obtain shareholders’ and regulatory approvals or to meet certain conditions.”
The two companies expect the public tender offer to begin at the end of the first quarter next year following the private placement, and hope to close the deal in the second quarter.
The Taiwanese company, whose shares trade on the emerging stock market of the GRETAI Securities Market, reported NT$86 million (US$2.85 million) in profit in the first half of the year on revenues of NT$1.98 billion. It made NT$403 million in profit last year on revenues of NT$3.52 billion.
The stock closed at NT$50.80 yesterday before DSM’s share purchase announcement.