RHIM’s parent company, Netherlands based RHI Magnesita N.V. is in the midst of a takeover offer from Ignite Luxembourg Holdings (owned by a US based PE fund Rhone Holdings VI LLC). On 30th May 2023, Ignite announced an offer to buy upto 20 % of RHI Magnesita’s o/s shares, listed on the London Stock Exchange at GBP 28.50 per share, a 20 % premium to the then prevailing market price. The offer size has since been raised to 29.90 % of the o/s capital. If the offer goes through, Rhone also intends to demand a representation on the company board.
Interestingly, Rhône had been a long-term investor in Magnesita Refratários S.A., a Brazil based mining group which was merged with RHI in 2017 to form the present day RHI Magnesita. Rhone had exited RHI Magnesita in 2018, but is seeking to re-enter the stock now.
The RHI Magnesita Board has taken a stance that the offer undervalues the company, with the offer price being at a discount to the company’s 5-year share trading range, as well as is lower than most of the analysts’s target prices. The Board feels the company’s share price does not yet reflect the full benefits of the several organic and inorganic initiatives taken by the company in recent times.
Austrian entrepreneur Martin Schlaff is the largest shareholder in RHI Magnesita with a 28.4% stake with a clutch of financial investors holding the rest.
Response to partial offer (eurolandir.com)
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