Ele­men­tis to pay less for Mondo on in­vestor back­lash

Business Daily (Kenya) - - MONEY & MARKETS - Com­pany is ex­pand­ing into talc ad­di­tives used in prod­ucts from plas­tics to cos­met­ics

Bri­tish spe­cialty chem­i­cals com­pany Ele­men­tis has struck a deal to buy Mondo Min­er­als for $100 mil­lion less than ini­tially agreed fol­low­ing crit­i­cism of the orig­i­nal price from its share­hold­ers.

Ele­men­tis said on Tues­day it had agreed with seller US pri­vate eq­uity firm Ad­vent to pay $500 mil­lion for Mondo Min­er­als, down from $600 mil­lion pre­vi­ously.

Ele­men­tis said in June it was buy­ing Am­s­ter­dam-based Mondo to ex­pand into talc ad­di­tives used in a range of prod­ucts from plas­tics to cos­met­ics.

Chief Ex­ec­u­tive Of­fice Paul Water­man said Ele­men­tis had agreed the re­vised deal af­ter con­sult­ing with its share­hold­ers. “The feed­back that they had from share­hold­ers was that the busi­ness makes a lot of sense, strate­gi­cally seems good, but they had some con­cerns raised about the price that Ele­men­tis was pay­ing,” a source fa­mil­iar with the mat­ter told Reuters.

“A num­ber of con­cerns were raised, but it was largely over the price,” the source added.

Mondo, which owns talc mines in cen­tral Fin­land, makes in­dus­trial talc ad­di­tives used to strengthen plas­tics, pro­vide cor­ro­sion re­sis­tance to coat­ings, an oxy­gen bar­rier to food pack­ag­ing and UV pro­tec­tion to cos­met­ics.

Ele­men­tis owns a mine in Cal­i­for­nia that pro­duces hec­torite, a soft clay used in per­sonal care and beauty prod­ucts such as face creams.

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