Houston-based TPC Group Monday said it has received a buyout offer from Innospec that tops a previous bid by two private equity firms in August.
Innospec's all-cash offer could be worth as much as $721 million, with shareholders receiving $44-46/share, a statement by TPC Group.
In August, First Reserve and SK Capital Partners proposed a takeover that valued TPC Group at $627.2 million and pay stockholders $40/share. The company has 15.68 million shares outstanding.
TPC's board of directors said Monday they would evaluate Innospec's offer to determine if it is a superior proposal, but that they continued to recommend that stockholders adopt the earlier bid by First Reserve/Capital Partners. That offer has not sat well with some of the company's major shareholders, who have reportedly said they would vote against it.
TPC Group produces butadiene, butene-1, raffinate, isobutylene and polyisobutylene at the facility and has a combined production capacity of over 1.5 billion lb/year. It has facilities in Texas and Louisiana. Its products are sold to producers of synthetic rubber, fuels, lubricant additives, plastics and surfactants.
Shares of TPC Group on NASDAQ were up nearly 11% midday Monday from the close Friday at $40.67/share.
