Reliance Worldwide Corp To Be Acquired By Brookfield Capital Partners

(RTTNews) - Reliance Worldwide Corporation Limited (RWC), an Australian manufacturer of plumbing products, Tuesday announced that it has entered into a process deed with Brookfield Capital Partners LLC, a unit of alternative investment management major, Brookfield Corporation (BN).

This follows Brookfield's unsolicited, non-binding, indicative proposal to acquire 100 percent of the common shares of RWC in cash for A$4.75 per RWC share bringing the total transaction to approximately A$4.1 billion.

The cash offer of A$4.75 per share represents a 31.6 percent premium to RWC's last closing price of A$3.61 per share on August, 17 and a 32.8 percent premium to RWC's 3-month volume weighted average price of A$3.58 per share up until August, 17.

This proposal is after an earlier unsolicited, non-binding, indicative offer from Brookfield in April and May for A$4.15, A$4.25 and A$4.50 cash per RWC share.

RWC provided Brookfield with non-public information on the company to facilitate a due diligence process by Brookfield over an approximately eight-week period, and following a negotiation Brookfield submitted a revised cash offer of A$4.75 per share in early August.

Under the process deed RWC has agreed to exclusivity restrictions including non-solicit, no talk and no due diligence obligations, for four weeks from 17 August to 15 September and both the companies have agreed towards entering into a Scheme Implementation Deed or SID on terms that are consistent with the proposal.

Further, Brookfield has agreed to a go shop provision in the SID that permits RWC for a period of 30 days to solicit a third-party interest to put forward an alternative proposal including providing due diligence information and negotiating terms of any proposal.

Currently, RWC shares are treading at A$4.5, up 24.65% on the Australian Stock Exchange.