Philippines-based D&L Industries has made a offer to purchase the remaining 65.3% stake it does not possess in Chemrez Technologies for PHP5.1bn ($117.3m).
Chemrez Technologies produces resins, oleochemicals, and speciality products in the Philippines, and has expertise in colourants, polymers, biopetroleum, powder coating, food, oil and gas, and water treatment technologies.
The company for the first six months of this year, generated revenues of PHP2.72bn ($62.5m) with a net income of PHP207m ($4.76m).
D&L at present possess a 34.7% interest in Chemrez, and is offering PHP6 ($0.13) per share for the remaining stake, a 24% premium over the 60-day average price of Chemrez' shares as of 29 August.
The offer values Chemrez Technologies at PHP7.81bn ($179.6m).
D&L Industries executive vice-president and chief financial officer (CFO) Alvin Lao said: "After a careful assessment of how to maximise shareholder value, we believe this acquisition is the best move forward for D&L Industries, Chemrez Technologies and their respective shareholders.
"Owning 100% of Chemrez broadens our portfolio, strengthens our capabilities, including cash generation, and bolsters growth as the specialty chemicals business continues to improve."
The company intends to sponsor the purchase through proceeds from its initial public offering in December 2012, and debt and equity.
D&L intends to combine Chemrez Technologies following the planned completion of the transaction in the fourth-quarter of this year.
D&L said in a statement that Chemrez Technologies may consider delisting from the Exchange if it no longer complies with the minimum public float after the tender offer.