Specialist materials company Fiberweb (FWEB) has announced a recommended cash offer from US player Polymer Group, which is owned by private equity company Blackstone. Fiberweb flagged a possible offer at 97.5p back in August, and Polymer Group has now made a formal offer at a slightly higher price of 102p per share in cash.
When the 1.2p half-year dividend is included, the offer values Fiberweb at around £183m and represents a 38 per cent premium to the average closing price over the 90-day period prior to Fiberweb's August announcement. The offer already has irrevocable undertakings from around 36 per cent of Fiberweb's shareholders. Broker N+1 Singer has raised its target price to 102p and says the offer looks fair with a bidding war unlikely.
