Refractories Maker Takeover Bid
Vesuvius Shares Surge As Company Weighs Renewed Takeover Proposal From RHI Magnesita
Anonymous
Vesuvius shares surged after the British refractories maker confirmed it is reviewing a renewed, unsolicited takeover proposal from rival RHI Magnesita. The latest proposal values Vesuvius at 551 pence per share, combining 470 pence in cash with RHI shares, and would give Vesuvius shareholders about 13% of the enlarged company. Vesuvius is weighing the offer with financial and legal advisers and cautioned that there is no certainty of a firm bid; earlier approaches were rejected, though the company previously allowed due diligence. A formal offer deadline is set for October 27, 2026.
Key Points
1
Vesuvius’s largest shareholder, Cevian Capital, gave an irrevocable undertaking to support a recommended offer on the proposed financial terms; Cevian has held a stake since 2012 and has board representation.
2
The proposed consideration includes Vesuvius’s declared interim dividend of 7.1 pence per share, with no reduction to the offer value.
3
The offer’s share component is 0.28 new RHI Magnesita shares for every 10 Vesuvius shares, with the 551-pence valuation based on RHI’s one-month volume-weighted average share price on August 27.
4
Vesuvius shares rose as much as 32%, their biggest surge since 1990, after the company disclosed the latest approach.
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