The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is in focus today after the company announced it has entered into a scheme implementation deed with Brookfield, under which Brookfield will acquire 100% of Reliance Worldside shares for US$3.38 per share. This cash offer represents a 43% premium to RWC's six-month VWAP and values the company at an enterprise value of approximately US$2.9 billion, or A$4.75 per share.
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What did Reliance Worldwide report?
- Scheme Implementation Deed signed for Brookfield to acquire 100% of RWC shares via a scheme of arrangement
- Offer price: US$3.38 cash per share (~A$4.75 based on exchange rates)
- Total enterprise value: approximately US$2.9 billion
- Premiums: ~43% to six-month VWAP, ~32.7% to three-month VWAP, and ~31.5% to undisturbed price
- Implied FY26 EV/EBITDA multiple: ~12.1x (post-AASB16)
- Shareholders can elect to receive payment in AUD or USD at implementation
What else do investors need to know?
The agreement includes a "Go Shop" provision, allowing Reliance Worldwide's board to actively seek out alternative bids until 15 October 2026. This means shareholders have the opportunity to benefit if a superior proposal emerges. After the Go Shop period, standard exclusivity, deal protections, and matching rights apply, including a US$25.3 million break fee and a reverse break fee on the same terms.
Completion of the transaction is subject to shareholder and regulatory approvals, including the Foreign Investment Review Board, ACCC, and equivalent authorities in the US, Germany and Ukraine. An independent expert will report on whether the scheme is in shareholders' best interests.
What did Reliance Worldwide management say?
Reliance Worldwide Chair Russell Chenu said:
The Board is unanimous in its view that this Transaction is in the best interests of RWC shareholders. The Board has carefully assessed the proposal on a fundamental valuation basis, considering RWC's strategic position, long-term growth opportunities and cash generation. The Board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the Cash Consideration and unanimously recommends that RWC shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interests of shareholders. In addition, the 'Go Shop' process provides us with the opportunity to explore broader buyer interest in RWC which will allow shareholders to be fully informed when making their decision on the Transaction
What's next for Reliance Worldwide?
The next step for Reliance Worldwide shareholders will be receipt of a Scheme Booklet, expected in November 2026, with full details of the proposal, including the independent expert's report. A Scheme Meeting, where shareholders will vote on the deal, is tentatively scheduled for later in 2026. If the deal is approved and all conditions are met, implementation is targeted for Q1 2027. If completion is delayed past March 2027, a "ticking fee" will accrue to shareholders.
Shareholders are encouraged to take no action until formal materials are received. The board unanimously recommends the proposal, subject to no superior bid and a positive expert report.
Reliance Worldwide share price snapshot
Over the past 12 months, Reliance Worldwide shares have risen 3%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.
