LUDWIGSHAFEN, Germany (Sept. 16, 2008) — BASF S.E. has made a takeover offer of specialty chemical company Ciba Holding A.G., and Ciba's board of directors has recommended its shareholders accept the offer.
BASF said it will pay about $44.60 in cash per nominal share in Basel, Switzerland-based Ciba, or about $5.4 billion, based on all outstanding Ciba shares and including all net financial liabilities and pension obligations.
The offer is 32 percent above the closing price for Ciba's shares on Sept. 12 and a premium of 60 percent above the volume-weighted average share price for Ciba shares in the 30 days prior to announcement of the public takeover offer.
BASF said the acquisition will strengthening its portfolio and expand its leading position in specialty chemicals with products and services for a variety of customer industries.
Armin Meyer, chairman of the board of directors of Ciba, said the offer combines a fair price with an industrially compelling solution for Ciba taking into consideration the increasingly challenging conditions within the industry.