FLSmidth Friday raised its offer for the acquisition of Ludowici Limited to A$11 per share. The new offer price reflects an enterprise value of approximately A$388m on cash and debt free basis. According to FLSmidth, the offer represents a premium of 214% over the share price on 18 January 2012 of A$3.50 and equals an implicit EV/EBITDA multiple in 2011 of 13.9x, based on FLSmidth's expectation of pro forma 2011 EBITDA of AUD 28m.
No changes have been proposed to the terms of the Scheme Implementation Agreement entered into by FLSmidth and Ludowici on February 16, 2012, other than to reflect the increased offer price. The new A$11 offer is less any dividends determined, declared or paid by Ludowici before the transaction is completed. Ludowici was recently awarded a record US$51 million contract from an existing client in Peru for quantity of Ludowici’s high capacity vibrating screens, to be used in a copper crushing and grinding operation.
The new offer follows a submission by rival bidder, Weir Group Plc, on 23 February 2012 of a binding offer for the acquisition of all Ludowici shares at A$10 per share, less dividends, and subject to FLSmidth not being allowed by the Australian Takeovers Panel to increase its offer above A$7.20 per Ludowici share. FLSmidth had announced Thursday an offer of A$10 per share for the proposed takeover of Ludowici.