Grafton gets 54% approval for Heiton deal

BUILDING materials group Grafton moved a step closer to clinching its takeover of rival Heiton yesterday when it said more than 80% of shareholders were in favour of the deal.

Grafton, which owns Woodie’s DIY and the Chadwicks chain of builders’ providers, said almost 54% of shareholders had accepted its takeover terms, which valued Heiton at €336 million.

Grafton already controlled almost 29% of the company before it triggered the takeover battle earlier this year.

The company has extended the deadline for Heiton shareholders who have not yet accepted the proposal, which will give them €6.54 per share in a mixture of cash and Grafton shares. Shareholders now have until November 8 to return signed acceptance forms.

If the deal goes through, investors who have failed to formally accept the Grafton offer will be forced to sell their shares to Grafton under the terms of Irish company law.

Grafton shareholders, meanwhile, are expected to approve the deal at an extraordinary general meeting on October 11.

The only remaining obstacle to the deal at that point will be the requirement to get approval from the Competition Authority which has the power to block the takeover.