Axiall Rejects Revised Proposal from WestlakeSought to Engage Constructively with Westlake Board and Management
ATLANTA--(BUSINESS WIRE)--Apr. 4, 2016-- Axiall Corporation (“Axiall” or the “Company”, NYSE: AXLL) today confirmed that it has received, and rejected, a revised proposal from Westlake Chemical Corporation (“Westlake”, NYSE: WLK) to acquire all of the outstanding common shares of Axiall for a consideration of $14.00 cash and 0.1967 Westlake shares per Axiall share, or approximately $23.12 per share based on the closing price of Westlake common stock on March 29, 2016 (the “Revised Proposal”).
Axiall noted that it actively engaged in discussions with Westlake over the past several weeks in an effort to see if Westlake was willing to make a revised proposal that appropriately reflects the high quality of Axiall’s assets, the significant growth potential of its business and the powerful synergies available in a combination. The Axiall Board of Directors, in consultation with its legal and financial advisors, carefully reviewed, considered and unanimously rejected the Revised Proposal.
On March 31, 2016, Axiall sent a letter to Westlake noting that Westlake had submitted a revised indication of value prior to any meaningful discussion of the very substantial synergies between the two companies, estimated by Axiall to be as high as $270 million annually, $210 million more than the $60 million in synergies underlying Westlake’s proposal. The letter also noted that despite its request, Axiall was not provided the opportunity to conduct due diligence with respect to Westlake’s business, which it would need given the substantial stock component to Westlake’s proposal.