Irish marketing, distribution and business support services firm DCC Plc (ISE:DCC) said on Friday it had agreed to take over the Benegas liquefied petroleum gas (LPG) distribution business of UK oil and gas major BP Plc (LON:BP).
Under the terms of the deal, DCC will make a cash payment of EUR24.5m (USD31.8m), on a cash-and-debt-free basis, for Netherlands-based BP Gas Nederland BV and the trade and assets of BP’s smaller LPG distribution operation in northern Belgium, both of which trade under the name Benegas.
The purchase of this business comes after DCC bought BP’s British LPG distribution activities as well as the Swedish and Norwegian LPG distribution operations of Statoil Fuel & Retail ASA (OSL:SFR). All three deals will boost the scale and geographic scope of DCC’s LPG activities in Europe, its CEO Tommy Breen said.
The new transaction is seen to close in late 2012 after receiving clearance from the Netherlands Competition Authority.
With headquarters in Putten, the Netherlands, Benegas supplies about 55,000 tonnes of bulk, cylinder and aerosol LPG each year to various industrial, commercial and local clients. The business employs 44 people and as at the end of 2011 had adjusted gross and net tangible operating assets of around EUR15.4m and EUR6.7m, respectively. For that same year it generated an adjusted operating profit of EUR4m.
UK Timeweave Plc (LON:TMW), a provider of broadcast services to the bookmaking industry, rejected on Friday the GBP0.22 (USD0.36/EUR0.27) a share takeover offer from British investor Joe Lewis’ company Mayfair Capital Investments Limited, advising shareholders not to accept it.
Bahamas-based Mayfair, owner of 29.99% in Timeweave, announced on 6 September a proposal to buy the rest of the company in a deal which would value the target at around GBP49.6m. The offer documents were posted to Timeweave shareholders on 11 September.
Timeweave’s independent directors said they had looked into the merits of the bid and had concluded that it would not serve the best interest of shareholders as it fails to reflect the full value of the company. While the offered price is a premium of some 12.8% to Timeweave’s closing on 5 September, it offers no premium to its 12-month to 5 September volume weighted average price and it is about 5.3% below the 24-month volume weighted average price prior to 5 September.
The independent directors said that the offer could represent a loss of value for shareholders who would accept it compared to the alternative of Timeweave’s strategic plan of seeking further investment opportunities.
Refering to Mayfair’s plans to delist Timeweave at reaching an ownership level of 75%, the company’s directors said that such a move would substantially lower the liquidity and marketability of any Timeweave shares not tendered to the bid.
In its statement from 6 September the buyer said that Timeweave shareholders controlling a combined 15.80% in the company, have pledged to sell their stock to Mayfair, bringing its total interest in the company to 45.79%. The offer is subject to gaining an ownership level of over 50%.
The Timeweave Group owns 50% in Amalgamated Racing Limited, the owner of exclusive licenses with 34 racecourses to broadcast pictures, audio and data from these courses to licensed betting offices in the UK and Ireland. It also holds 49.9% in British TV producer and distributor DCD Media plc (LON:DCD) as well as SportingWins Limited, a firm writing hedging agreements to cover financial risk of corporate clients dependent on the results of professional sports events.
Investec Investment Banking is advising Timeweave in connection with the buyout offer.
US steel and steel products manufacturer Nucor Corporation (NYSE:NUE) said that it had agreed a deal for Skyline Steel LLC, a subsidiary of Luxembourg-based sector player ArcelorMittal (AMS:MT).
Nucor will acquire the business and its affiliates for a total consideration of about USD605m (EUR477m). Skyline Steel will become a wholly owned Nucor subsidiary, continuing to operate from its base in Parsippany, New Jersey. It will remain the exclusive North American and Caribbean distributor of ArcelorMittal’s piling and foundation products.
The transaction is expected to close as soon as the parties obtain the necessary regulatory approvals and all closing conditions are met. Nucor expects the deal to deliver substantial synergies and enhance its financial results in the next fiscal year.
Skyline Steel is a major steel foundation distributor for customers operating in the US, Canada, Mexico and the Caribbean. Its products are used in the most challenging construction and infrastructure segments such as marine construction, bridge and highway construction, heavy civil construction, storm protection, underground commercial parking and environment containment.
Nucor chairman and chief executive Daniel R. DiMicco stated that his company was thrilled to be acquiring a business that had been its trusted piling products distribution partner for more than 20 years.
Thanks to its robust distribution network, top-quality customer service and excellent technical support, Skyline Steel is in a good position to expand further its North American piling and foundation products business, DiMicco said.