UAC unveils merger plan for Hydrotek
Universal Adsorbents & Chemicals (UAC) Plc has made a tender offer to purchase all 194.98 million shares in Hydrotek Plc (HYDRO) from its shareholders at a price of Bt1 each.
UAC said Hydrotek’s shareholders have accepted the tender offer in the form of newly issued ordinary shares at a swap ratio of one share in Hydrotek for one share of UAC, with no cash alternative offered.
The merger process is expected to be completed by the fourth quarter of this year. The move will double the company’s total revenues to Bt4 billion within the next two years, said UAC chief executive Kitti Jivacate.
UAC will also acquire 49,997 ordinary shares (accounting for 49.99 per cent of paid-up capital) of UAC Hydrotek Ltd, which are owned by Hydrotek at the price of Bt100 per share.
With the merger, UAC plans to diversify from its sole business in the import and distribution of chemicals and equipment for industrial use into the alternative-energy and public-utility sectors. UAC and HYDRO envisage a potential business opportunity from their merger through enhancement of their operational capability and competitiveness amid an open and highly competitive business environment so as to gear up for future business opportunity and ongoing growth. The merger will lead to their mutual business support and cooperation, which will the benefit business operations of the two parties. The merger will also combine their strengths, with UAC as a leading importer and distributor of chemicals and equipment for industrial use and Hydrotek as one of the leaders in the water-treatment industry. Both of them have strong reputations and experience in their respective businesses, as well as large customer bases.
