RHI Magnesita confirms advanced talks on cash-and-share Vesuvius proposal

RHI Magnesita ($RHIM) confirmed advanced discussions over a possible recommended acquisition of Vesuvius ($VSVS). The proposal comprises 470 pence in cash and approximately 0.028 new RHI Magnesita shares for each Vesuvius share, implying 549 pence at the reference share price. That represents a 47% premium to Vesuvius’s preceding closing price. Eligible shareholders would also retain the 7.1-pence interim dividend.

The combination would bring together refractory and flow-control operations, with Vesuvius investors owning about 13% of the enlarged group. Cevian, holding approximately 23% of Vesuvius, has provided conditional support for a recommended transaction. Cash consideration would be funded with new debt. This remains a nonbinding proposal under consideration, not a firm offer or agreed acquisition; the initial deadline for announcing a firm intention or withdrawing is October 27.

Sources:

• RHI Magnesita RNS announcement