Superior Plus to buy chemical maker Canexus Corp for C$324.1 million
(Reuters) - Diversified chemicals company Superior Plus Corp will buy chemicals and handling company Canexus Corp for C$324.1 million, as it looks to expand its specialty chemicals portfolio.
Canexus shareholders will get 0.153 of a Superior share. This works out to C$1.74 ($1.33) for each share, a premium of 47.5 percent to Canexus closing price on Monday.
The deal value has been calculated on Canexus' 186.3 million shares outstanding at June-end.
Superior Plus said it had got C$650 million in financing and said it will refinance Canexus' debt. Canexus had a total net debt of C$554.8 million as of June 30.
Canexus, which owns sodium chlorate and chlor-alkali plants in Canada and Brazil, had sold its Bruderheim oil train terminal in Alberta to Cenovus Energy Inc for C$75 million in June.
CIBC World Markets and The Valence Group acted as financial advisers to Canexus. National Bank Financial Markets and J.P. Morgan Securities LLC acted as financial advisers to Superior Plus.
(Reporting by Anannya Pramanick in Bengaluru; Editing by Shounak Dasgupta)
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