IEPER, Belgium — March 7, 2016 — Following the announcement on January 25, 2016, that Tessenderlo Group and Picanol Group had decided whether and how the terms and conditions of the transaction that was announced on December 16, 2015, could be amended with a view to its approval by the shareholders of Tessenderlo Chemie NV, various meetings were held to sound the market on their views on the transaction.
Taking into account the market feedback, both companies have, with the assistance of their respective advisers and in consultation with each other, analyzed whether the terms and conditions of the proposed transaction could be amended to accommodate and reconcile the different views expressed. After proper consideration, the board of directors of Picanol NV (and its subsidiary Verbrugge NV) has concluded that there is currently insufficient market support at terms reasonable for Picanol NV and its shareholders to complete the transaction successfully. Hence, the board of directors of Picanol NV decided not to endorse any changes to the terms of the transaction.
On this basis, the boards of directors of both companies have each decided to terminate their negotiations and to withdraw the proposal to combine. Both Picanol Group and Tessenderlo Group have the means and will continue to focus on an enhanced value creation in each of its businesses.
Although Picanol Group regrets that the proposed transaction cannot be concluded, it intends to continue to support Tessenderlo Group as a long term shareholder.
Posted March 8, 2016
Source: Picanol Group