Reliance Worldwide board backs Brookfield’s $4.0B takeover

• Reliance Worldwide board backs Brookfield’s $4.09 billion takeover proposal
• The board reaffirmed its unanimous recommendation for shareholders to vote in favour of the $4.87-per-share cash bid.
• The company stated that the transaction follows an international market testing process that yielded no competing offers.

Reliance Worldwide (ASX:RWC) announced that its board has reaffirmed its unanimous recommendation for shareholders to vote in favour of a takeover bid from Brookfield valued at $4.09 billion.

The decision follows a one-month "go shop" process during which the company and its financial advisers engaged with potential strategic and financial buyers from international markets.

"The fact that the process did not result in a proposal that the board considers superior to the Brookfield transaction confirms the board’s view that the cash consideration offered by the Brookfield transaction represents compelling value," said Reliance chair Russell Chenu.

The company reported that no alternative proposals were received during the market testing period, and the board concluded that a superior offer is unlikely to emerge.

Implementation of the acquisition is expected to occur in late December, pending the completion of customary regulatory and shareholder approvals.

Following the announcement, the Reliance Worldwide share price was unchanged at $4.62.