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Rexam agrees to be bought by rival Ball in 4.4 billion pounds deal

Staff writer |
The boards of Ball Corporation and Rexam plc have reached agreement on the terms of a recommended offer for the entire issued and to be issued ordinary share capital of Rexam by Ball UK Acquisition Limited (Bidco), a wholly-owned subsidiary of Ball.

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Under the terms of the offer, Rexam ordinary shareholders will be entitled to receive for each Rexam ordinary share held 407 pence in cash and 0.04568 of a New Ball Share.

The exchange ratio is based on Ball's 90-day volume weighted average price as of 17 February 2015 and a value of 610 pence per Rexam Ordinary Share, valuing the entire issued and to be issued ordinary share capital of Rexam at approximately £4.3 billion.

Based on Ball's closing share price of $74.39 and the exchange rate of $1.54:£1 on February 17, 2015 (being the last practicable date prior to this announcement), the offer represents an indicative value of 628 pence per Rexam ordinary share values the entire issued and to be issued ordinary share capital of Rexam at approximately £4.4 billion represents an attractive premium of approximately 40 percent to the Closing Price per Rexam ordinary share of 448 pence on 4 February 2015 (being the last business day before commencement of the offer period).


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