KKR consortium proposes acquisition of LCY Chemical
LCY Chemical and global investment firm KKR announced the signing of a share exchange agreement for a consortium led by KKR to acquire all of the issued and outstanding shares of LCY for TWD56 per share in cash, adjusted to include a TWD2.90 per share dividend. The transaction, which has been unanimously approved by the board of directors of LCY upon the recommendation of its Audit Committee comprising independent directors, represents a total market capitalization of approximately $1.56B. The offer price represents a premium of 17.28% to LCY's closing price on 20 July 2018, the last trading day prior to the transaction announcement. It also represents a premium of 19.2%, 23.0% and 24.3% over the 30-day, 90-day and 180-day average closing prices, respectively. Immediately following consummation of the share swap, KKR will hold a majority and controlling interest in LCY. KKR makes its proposed investment from its Asian Fund III. The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions and regulatory approvals. Upon the completion of the transaction, LCY will become a private company, and its shares will no longer be traded on the Taiwan Stock Exchange.