Australia's Reliance Worldwide Corporation (RWC.AX) said on Tuesday that Brookfield Capital Partners LLC had sweetened its offer to buy the plumbing solutions company for an enterprise value of A$4.1 billion ($2.91 billion).
Under the proposed deal, Brookfield would acquire all outstanding ordinary shares of Reliance for A$4.75 apiece in cash, implying an equity valuation of A$3.55 billion for the Australian firm. Reliance said Brookfield had made a series of unsolicited, non-binding, indicative offers in April and May at A$4.15, A$4.25 and A$4.50 a share, all in cash.
Reliance also said it has signed a process deed with Brookfield to move the proposal forward. Under the agreement, Reliance cannot solicit or discuss competing offers and does not have to share information with other potential bidders during a four-week period from August 17 to September 15.
If a scheme implementation deed is entered between the two parties, it would give Reliance 30 days to seek and negotiate potentially better offers from others.
Reliance has appointed Goldman Sachs and Oaktower Partnership as financial advisers for the proposal.
($1 = 1.4075 Australian dollars)
