TyraTech enters into merger agreement with American Vanguard Corporation

28th Sep 2018 14:53

(Sharecast News) - Life sciences company TyraTech has entered into a conditional merger agreement with American Vanguard Corporation, whereby, conditional upon approval by TyraTech shareholders, AMVAC would acquire the remaining shares of common stock in TyraTech which it did not already own, for a consideration of 3.15p per share, it announced on Friday.The AIM-traded firm said that under the terms of the merger agreement, its shareholders would be entitled to receive 3.15p in cash for each share they held in the company.That would return a further £3.3m to non-AMVAC shareholders, in addition to the consideration returned in January via a tender offer at 3p per share.The transaction remained subject to certain closing conditions, including the approval of TyraTech's shareholders for both the transaction and the resulting cancellation of the admission of the shares to trading on AIM."In December 2017 when writing to shareholders concerning the disposal of Vamousse and the return of capital to TyraTech shareholders, we explained that we believed that the company's animal health business was capable of being developed to serve much larger markets than its initial products, but that this would require additional funding. However, this funding has not been forthcoming," said chairman José Barella."Accordingly, we have decided to enter into the conditional merger agreement with AMVAC."Barella noted that the proposed consideration of 3.15p per share represented a "significant premium" over the company's current share price, and was in addition to the $8.4m already returned to shareholders through the tender offer in January."The independent directors believe TyraTech's shareholders, employees and business will be better positioned following the company's acquisition by AMVAC than if TyraTech had remained as an independent entity."