FLSmidth (FLIDF.PK) Thursday announced it has agreed on a Scheme Implementation Agreement that will see the company offer A$10 per share for the proposed takeover of Ludowici. The price exceeds a rival offer made by Britain's Weir Group Plc for the Australian mining equipment firm. FLSmidth’s latest offer marks an increase from an original offer that was pegged at A$7.20 per share.
In an announcement on the ASX, FLSmidth said the new offer marks a premium of 186% over the share price as of 18 January 2012 of AUD 3.50 and equals an implicit EV/EBITDA multiple in 2011 of 12.8 times, based on FLSmidth's expectation of proforma 2011 EBITDA of AUD 28 million. The Ludowici Board of Directors has subsequently advised shareholders to accept the proposed acquisition.
The FLSmidth's purchase offer was first made on 23 Jan. 2012, when the company announced it had entered into a Process Agreement with Ludowici regarding its interest to acquire all of the shares of Ludowici at a price of AUD 7.20, less any dividends paid. Britain’s Weir Group had launched a counter bid for Ludowici, later indicating in a letter that FLSmidth was incapable of raising the offer after declaring its initial bid was final. Elsewhere, the Australian benchmark S&P/ASX200 index last week dropped at the close of trading on Friday by 7.8 points or 0.18 per cent at 4,282.9. The broader All Ordinaries index was at 4,357.1, down 6.6 points or 0.15 per cent.