Brookfield Capital Partners has raised its takeover offer for Australian plumbing products maker Reliance Worldwide to A$4.75 per share in cash, valuing the company at about A$4.1 billion including debt. The proposal implies an equity value of about A$3.55 billion and represents a 31.6% premium to Reliance Worldwide's A$3.61 closing price on Monday, with shares surging 24% on Tuesday after the announcement. The latest offer follows three unsolicited proposals from Brookfield earlier this year at A$4.15, A$4.25 and A$4.50 per share, and Reliance Worldwide has now entered into a process deed granting Brookfield an exclusivity period through September 15. The companies will work toward an implementation deed, and if a definitive agreement is reached, Reliance Worldwide would have a 30-day period to consider competing proposals. The company's board has not yet made a recommendation on the offer and has advised shareholders to take no action at this stage.
Brookfield Asset Management Ltd.Brookfield's increased bid for Reliance Worldwide is a capital investment, potentially positive for Brookfield's portfolio.
Reliance Worldwide receives a higher takeover offer at a premium, boosting its share price.
