Reliance Worldwide announced on Monday that no competing buyers emerged during the 'go shop' process regarding the proposed acquisition of the Australian firm by Brookfield. This led the board of directors to reaffirm its unanimous approval for shareholders to support the deal.
The plumbing supplies company had previously agreed in September to an implementation agreement under which Brookfield Capital Partners and its affiliates would acquire all shares of Reliance Worldwide at a price of $3.38 per share. The total value of the company is estimated at $2.53 billion.
The offer implies a value of approximately A$4.87 per share, based on the exchange rate as of October 16. Last month, Reliance reported that investors would have the option to receive payments in US dollars or Australian dollars if the deal is approved by shareholders and goes through.
The companies agreed to the 'go shop' provision, which is unusual for Australian deals and allowed Reliance Worldwide to seek alternative offers, access due diligence materials, and discuss terms.
In its statement, Reliance noted that despite extensive engagement with potential buyers during the 'Go Shop' period, no offer was received. Following the conclusion of this period, standard restrictions on negotiations, discussions, and due diligence stipulated in the implementation agreement came into effect. The board of directors once again recommended that shareholders vote in favor of the scheme in the absence of a more favorable offer.