TORONTO—Chemtrade Logistics Income Fund is raising its bid for Canexus Corp. and taking it directly to shareholders, following opposition from the Calgary-based chemical company’s board of directors.
Toronto-based Chemtrade is offering $1.50 cash per share of Canexus, which produces sodium chlorate—a chemical used by the pulp and paper industry.
Chemtrade says its offer values Canexus at $884 million, including debt obligations it would assume.
The offer is below the $1.52 Canexus closed at on Sept. 30, but higher than its previous bid of $1.42 per share cash, announced Sept. 14.
Chemtrade says its revised offer is fair and in line with what was offered by Superior Plus, which had attempted a friendly deal with Canexus that fell apart after a U.S. agency said it would raise objections.
The U.S. Federal Trade Commission said in June that it would try to block the transaction because of its impact on competition in North America’s sodium chlorate market.