Key facts
- Brookfield Capital Partners has sweetened its offer to buy Reliance Worldwide.
- The new offer values the plumbing solutions company at an enterprise value of A$4.1 billion ($2.91 billion).
- Brookfield proposes to acquire all outstanding ordinary shares for A$4.75 per share.
- Reliance Worldwide has signed a process deed with Brookfield to move the proposal forward.
- Reliance Worldwide cannot solicit competing offers during a four-week period ending September 15.
Brookfield Capital Partners LLC has increased its offer to acquire Reliance Worldwide Corporation, an Australian plumbing solutions company, for an enterprise value of A$4.1 billion ($2.91 billion).
The sweetened offer proposes A$4.75 in cash for each outstanding ordinary share, implying an equity valuation of A$3.55 billion for the firm. Brookfield had previously made unsolicited, non-binding offers in April and May at lower price points.
Reliance Worldwide announced it has signed a process deed with Brookfield, which will prevent the company from soliciting or discussing competing offers for a four-week period from August 17 to September 15. If a scheme implementation deed is later agreed upon, Reliance would have 30 days to seek and negotiate potentially superior offers.
Goldman Sachs and Oaktower Partnership have been appointed as financial advisers to Reliance Worldwide for the proposal.