(Reuters) – Tikkurila Oyj on Tuesday agreed to PPG Industries Inc’s increased buyout offer of 1.24 billion euros ($1.52 billion) after the Finnish paint maker received a competing proposal.
Tikkurila shareholders would get 27.75 euros in cash for each Tikkurila stock they own, up from PPG’s prior offer of 25 euros per share, the companies said.
The offer price represents a premium of about 84.5% to Tikkurila’s closing price on Dec. 17, the last trading day before PPG announced the initial offer.
Both companies expect the tender offer, which values Tikkurila at 1.22 billion euros, for all outstanding shares to commence on or around Jan. 15, with the deal expected to close in the second quarter of 2021.
The board of directors of Tikkurila has unanimously decided to recommend that its shareholders accept the tender offer, with certain major shareholders reaffirming their support for the deal.
($1 = 0.8135 euros)
Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath