BERLIN German-based roof tile maker Braas Monier Building Group (BMSA.DE) has agreed to be taken over by U.S. rival Standard Industries [GAFCO.UL], ending its resistance to the bid after Standard Industries raised its offer, valuing the company at around $1.2 billion.
The German company said in a statement on Sunday that Standard Industries had raised its offer to 25.27 euros a share in cash from a previous 25 euros.
Braas Monier's shares closed at 26.35 euros on Friday but the company said shareholders will receive the equivalent of 28.50 euros per share under the latest offer, because it will go ahead and make a bonus share issue as well as paying an interim dividend of 0.64 euros a share.
The new offer values the company at 1.1 billion euros ($1.2 billion), excluding debt, according to Thomson Reuters data.
Last month Braas Monier announced the plans to grant 3.9 million new shares to its shareholders and said the share issue plus a special dividend would effectively raise the value of the offer to 28.13 euros a share.
The U.S. company responded by taking legal action against the capital increase and a court had been due to rule on whether to lift a temporary injunction before Wednesday.
Braas Monier said on Sunday that Standard Industries had agreed to drop the legal action and it recommended shareholders accept the new offer.
The takeover will give Standard Industries, which currently gets about three quarters of its revenue in the United States, a foothold in Europe.
The German company's chief executive and financial officer will remain in place.
"The combination of these successful businesses will open up new interesting development opportunities while providing increased stability, diversification and scale," Braas Monier's chief executive, Georg Harrasser, said in a statement.
Braas Monier's financial advisor is Rothschild, while Standard Industries is being advised by Moelis & Co. and Deutsche Bank.
(Reporting by Victoria Bryan; Editing by Greg Mahlich)